New Delhi : The Enforcement Directorate (ED) has moved the Interpol for issuance of a Red Corner Notice against diamond traders Nirav Modi and Mehul Choksi in connection with the over Rs 12,000 crore PNB scam.
Officials said the agency had sought issuance of the Interpol warrant against the two, based on court-issued non-bailable warrants obtained by it in a money laundering case.
The agency is understood to have sent the request to the CBI for taking it up with the Interpol headquarters in Lyon, France. A Red Corner Notice (RCN) is issued “to seek the location and arrest of wanted persons with a view to extradition or similar lawful action” in a criminal case probe.
Once an RCN is issued, the Interpol (international police) seeks to arrest the person concerned in any part of the world and notifies that country to take his or her custody for further action at their end.
Ban on LoUs to take toll on small firms
New Delhi : Industry bodies on Wednesday said RBI’s decision to ban Letters of Undertaking (LOUs) for trade credit for imports will have a disruptive impact, at least in the immediate term, as small businesses would require higher working capital.
Ajay Sahai, Director General of exporters’ body FIEO opined that RBI’s move will have limited impact as LoUs are generally used in gems and jewellery sector and that too by large players. CII President Shobana Kamineni said the move would have a “disruptive impact” on the buyers’ credit market, in the immediate term.
“The traders who have been conducting business through these two instruments will now have to necessarily shift their transactions to Letters of Credit and bank guarantees,” said Kamineni.