The Interpol has issued a Red Corner Notice against Nehal Modi, a Belgian citizen, who is step brother of prime accused Nirav Modi in the Rs 14,000 crore PNB credit fraud case. The RCN comes at the behest of ED.
The ED had registered two separate money laundering cases in Punjab National Bank (PNB) scam against Nirav Modi , Mehul Choksi and others under the provisions of Prevention of Money Laundering Act on the basis of FIRs registered by Central Bureau Of Investigation (CBI) under IPC sections relating to criminal conspiracy and cheating besides provisions of the Prevention of Corruption Act.
They were booked by the CBI for allegedly cheating PNB in connivance with certain bank officials by fraudulently getting the Letters of Undertaking (LOU) issued and Foreign Letter of Credits (FLCs) enhanced, causing wrongful loss to the public sector bank.
Nehal Modi is one of the accused in the case against whom prosecution complaints (chargesheets) have been filed in the two cases before the Special PMLA Court, Mumbai. The Special Court had issued two separate open-ended Non Bailable Warrants (NBWs) against Nehal Modi.
"Accused Nehal Modi was looking after the affairs of Twin Fields Investments Ltd., Bailey Bank for prime accused Nirav Modi. Both these companies had received around USD 50 Million from dummy companies of Nirav Modi which in turn received this fund from the fraud committed on PNB," the ED said in a statement.
For Nirav Modi, he became the protector and investment advisor of "The Ithaca Trust". The Trust got the tainted funds to the tune of USD 30 Million after extensive layering and two immovable properties were purchased in USA from these tainted funds.
After the case surfaced, Nehal Modi had dealt with the Proceeds of Crime and had taken away diamonds worth USD 6 Million and 150 boxes of pearls from Hong Kong and cash of AED 3.5 Million besides 50 Kg gold (along with Mihir Bhansali- another co-conspirator) from Dubai. He was also involved in destroying the digital evidence (Mobile Phones and Server) pertaining to the case in Dubai.
In the case of Mehul Choksi, Nehal Modi was incharge of Samuels Jewellers INC and Diamlink Inc. At his instance, these companies had received around USD 19 Million of Proceeds of Crime in the guise of royalty and advances from the Dubai- based shell companies of Mehul Choksi.