Provisional arrest of Nirav Modi from Hong Kong? China says basic law will be followed

New Delhi: Days after the Ministry of External Affairs submitted a request to Hong Kong authorities for provisional arrest of Nirav Modi, wanted in connection with PNB loan fraud, China has said that it will follow the basic and relevant laws under the relevant judicial agreements with India.

Chinese Foreign Ministry spokesman Geng Shuang said, "the ministry has sought the provisional arrest of Nirav Deepak Modi by the government of the Hong Kong Special Administrative Region (HKSAR), the People's Republic of China. According to the one country two systems and basic law of the HKSAR, under the assistance and authorisation of the central government, the HKSAR can make proper arrangement on judicial mutual assistance with other countries. If India makes relevant request to the HKSAR, we believe the HKSAR will follow the basic law and relevant laws and under relevant judicial agreements with India with the relevant issue".

A provisional arrest is made pending a formal extradition request. This was done after an FIR was registered against them by the CBI for an alleged fraud worth several thousand crores in the Punjab National Bank two months ago.

Modi and Choksi had fled the country after the alleged bank fraud came to light.

The MEA had served show cause notices to Modi and Choksi on February 16, giving them a week to respond.

Meanwhile, the Central Bureau of Investigation (CBI) court in Mumbai on Sunday issued a non-bailable warrant against diamond jeweller Nirav Modi and his uncle Mehul Choksi in connection with the multi-million Punjab National Bank (PNB) fraud.

In February 2018, it had emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of PNB in favour of Hong Kong branches of Allahabad Bank and Axis Bank. These letters helped facilitate Rs 280.7 crore fraud by jewellery designer Nirav Modi among others.

With PTI Inputs