Diamond merchant Nirav Modi has been arrested in London in connection with multi-billion fraud that he had committed in a branch of Punjab National Bank in Mumbai
“Nirav Deepak Modi, 48 (Date of Birth 24.02.71), was arrested on behalf of the Indian Authorities on Tuesday, 19 March, in Holborn,” the Metropolitan Police said in a statement. This action was taken after a London court had issued an arrest warrant against Nirav Modi in response to an Enforcement Directorate’s (ED) request for his extradition. He will be produced in the court on Wednesday the 20th.
CBI sources had mentioned earlier that said that swift efforts are being made to get absconding Nirav Modi extradited from the United Kingdom. The United Kingdom had responded to a Red Corner Notice (RCN) issued by the agency against Nirav Modi last year . The RCN was issued in June 2018 on a request from the agency to the Interpol.
Nirav Modi has fled after allegedly siphoning off about Rs 13,500 crore from PNB using Letters of Undertaking (LoU) in collusion with his uncle Mehul Choski.
The 48-year old Nirav Modi was recently spotted in a tony neighbourhood of London.
Nirav Modi and his uncle Choksi left the country in January last year, much before the biggest scam in India’s banking history was unearthed.
It is alleged that Nirav Modi and Choksi through their companies availed of credit from overseas branches of Indian banks using fraudulent guarantees of the PNB given through LoUs and letters of credit which were not repaid, bringing the liability on the state-run bank, the officials said.
An LoU is a guarantee given by an issuing bank to Indian banks which have branches abroad to grant short-term credit to the applicant.