CBI special court issued non-bailable warrants against Nirav Modi, Mehul Choksi

Vastavam web: A special court of the Central Bureau of Investigation (CBI) issued non-bailable warrants against jewellers Nirav Modi and Mehul Choksi, who are central figures in an alleged $2 billion scam at state-run Punjab National Bank (PNB), according to a source within the investigative agency.The CBI is now also questioning some officials at overseas branches of Indian banks which issued loans to companies owned by the two jewellers against bank guarantees – later shown to have been fraudulently issued by certain rogue employees at PNB.

The court in Mumbai approved the CBI’s application to issue non-bailable warrants against Modi and Choksi in the PNB fraud, said the agency source, who asked not to be identified.Modi and Choksi have denied the allegations against them and authorities say they both left the country before the fraud was uncovered in February. PNB has said it is working with the investigators and regulators probing the fraud case.

The CBI is also questioning officers of overseas branches of Indian banks that extended credit facilities on the basis of the fraudulent letters of undertaking (LOUs), issued by employees of PNB, the source said.