The CBI move comes amidst media reports that Indian agencies told the the Caribbean nation that there was no adverse information against Mehul Choksi when it did a background check on the fugitive billionaire before granting him citizenship in 2017.
The government also told the Antiguan authorities to prevent Choksi's movement from land, air or sea.
Diamantaire Nirav Modi's uncle was reportedly seeking asylum in the US. Based on this information Indian authorities had sought Washington's help in his extradition.
Nirav Modi and his uncle Mehul Choksi are being investigated by the Enforcement Directorate for allegedly cheating the PNB, the country’s second largest lender, to the tune of more than USD 2 billion.
The ED charge sheet focuses on the money laundering aspect and the role of Nirav Modi and others in perpetrating the alleged fraud, a senior official said.
The downgrade also reflects the weak internal controls and processes of the bank, given that the fraudulent transactions were undetected for a number of years.
The ED asked them to depose before the investigating officer of the case in Mumbai over the next few days.
The Fugitive Economic Offenders Bill was introduced in the Lok Sabha on March 12, but could not be taken up for discussion and passage due to the logjam in Parliament over various issues.
The probe is reportedly a part of the existing FIR filed against Choksi and his Gitanjali Group but different from the Rs 14,700 crore Punjab National Bank (PNB) fraud case.
Nirav Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB of over Rs 13,000 crore through fraudulent Letters of Undertaking (LoUs).
Officials said the Enforcement Directorate along with the CBI launched fresh searches on March 22 at the Samudra Mahal luxury residential flats of Modi in Mumbai's Worli area which resulted in the recovery of fresh valuables.
The PNB, the country's second-biggest state-run lender, filed a supplementary complaint to the CBI on March 4 against Gitanjali Gems Ltd, Gill India Ltd, Nakshatra Brand Ltd and Asmi Jewellery India Ltd for the additional fraud amount.
Opposition Congress and TMC were up in arms against the government over the Rs 12,700 crore fraud at country's second largest PSU lender PNB and continued with their vociferous protests in the House.
TDP MPs and Congress member KVP Ramachandra Rao held posters demanding special status to Andhra Pradesh to make up for the deficit arising from carving out of Telangana.
In a filing to the BSE late last night, the bank said the amount of unauthorised transactions could go up by more than Rs 1,300 crore.
The ED today also examined the state-owned bank's Executive Director K V Brahmaji Rao to understanding how the alleged fraud was detected and other banking procedures.
On January 31, the CBI had registered an FIR against Nirav Modi, his companies, and diamond jeweller Mehul Choksi. Later, the ED also started its probe.
The countries where the LRs would be sent include Belgium, Hong Kong, Switzerland, the United States, the United Kingdom, Dubai, Singapore and South Africa.
Gandhi is on the second leg of his three-day tour of northern parts of Karnataka. This is his second visit to the state in less than a fortnight.
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