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The law might well be soon catching up with embattled diamantaire Nirav Modi. Nirav Modi may be running away evading possible arrest , but his troubles is now set to increase .
A court in Mumbai issued an open-ended non-bailable warrant (NBW) against him and others in cases related to the over $2 billion fraud at the Punjab National Bank (PNB).
Special judge for Prevention of Money Laundering Act (PMLA) cases M S Azmi ordered the issuance of the NBW against Modi and 12 other absconding accused, including Modi’s family members.
The Enforcement Directorate (ED) had moved the court for an open-ended NBW against them, saying the previous warrant could not be executed in time and it expired .
The court had issued the previous NBW on 12 June after taking cognisance of a chargesheet filed by the ED.
An “open-ended” warrant does not have an expiry date. Modi and others are being probed under various criminal laws after the fraud came to light in January.
Modi and others had allegedly fraudulently obtained Letters of Undertaking (LoUs) from the PNB in connivance with some bank officials. The fraud is pegged at over $2 billion.
An LoU is a guarantee given by an issuing bank to Indian banks that have branches abroad for granting a short-term credit to the applicant. An LoU is a guarantee given by an issuing bank to Indian banks that have branches abroad for granting a short-term credit to the applicant.
