PNB scam: CBI court issues non-bailable warrants against Nirav Modi, Mehul Choksi

A special CBI court has issued non-bailable warrants against jewellers Nirav Modi and Mehul Choksi, who are being investigated in the alleged Rs 13,600 crore Punjab National Bank (PNB) fraud, according to a sources.

The issuance of NBWs by a court will also enable the CBI to seek Red Corner Notices against both the accused from Interpol.

The government has indicated that Modi could be hiding in Hong Kong where it has sent a request for his provisional arrest. Both Nirav Modi and Choksi fled the country just before the fraud was uncovered in February.

PNB has said it is working with the investigators and regulators investigating the fraud. The duo has repeatedly refused to join the investigation in the scam, considered the biggest in the banking history of the country, the officials said.

The CBI had written to Modi and Choksi to join probe on their official e-mail IDs but they have refused to join it citing business engagements and health issues.

The CBI, in the meanwhile, is questioning officials of overseas branches of Indian banks which had extended credit facilities to the companies of Modi and Choksi on the basis of fraudulent Letters of Undertaking (LoUs) issued by the Punjab National Bank's Brady House branch in Mumbai.

The agency has also summoned the official who handled foreign exchange transactions in the Hong Kong branch of the Allahabad bank, they said, adding that he may join the probe soon. As many as 20 arrests have been made so far in the biggest bank scam in the country.