CBI files extradition request as Nirav Modi's presence in UK confirmed

The UK authorities on Monday (20) have confirmed the presence of business tycoon, alleged to be the mastermind of India’s biggest banking fraud worth over 1.57 billion GBP ($2 billion), Nirav Modi is in their country.

India’s premier investigation agency, Central Bureau of Investigation (CBI) has sent an extradition request to country’s home ministry after getting confirmation on the presence of Nirav Modi in the UK and the request is expected to be sent to London through India’s external affairs ministry, sources said.

The investigation agency has also requested the authorities in the UK to detain Nirav Modi as there is already a Red Corner Notice (RCN) has been issued against him by the Interpol. The RCN was issued following the request by CBI in June, 2018.

In the first week of this year, Nirav Modi, along with his wife Ami Modi, a US citizen, brother Nishal Modi, a Belgian citizen, and uncle Mehul Choksi moved abroad, just a few days before India’s biggest banking scam came into light. Nirav Modi and his three other relatives are accused in the first information report (FIR) filed by CBI in connection with the scam.

Citing business and health reasons, Nirav Modi and Choksi have declined to return to India and to cooperate with the ongoing investigations into the banking fraud. Nirav Modi was able to run across several of parts of the world even after data about his passport revoked by the Indian government was flashed in the Interpol database in February, CBI said earlier.

India’s biggest bank fraud case consists the alleged issuance of fraudulent Letters of Undertakings (LoUs) of more than 1.57 billion GBP to companies of Nirav Modi and his uncle Mehul Choksi by the Punjab National Bank's (PNB) Brady House branch located in Mumbai during the period between 2011-17.

LoU is an assurance provided by an issuing bank to Indian banks with functioning branches in foreign countries to grant short-term loans to the applicant. Nirav Modi, his companies, and other accused allegedly managed to get credit from the overseas branches of Indian banks using the fraudulent PNB guarantees given through LoUs and letters of credit issued by the Brady House branch which were remained unpaid, bringing the liability on the PNB.