Bank of India has filed a lawsuit against fraudster Nirav Modi in a Hong Kong court for the recovery of debt to the tune of $6.25 million. The infamous billionaire Modi got the money from the bank, after illegally acquiring Letters of Undertaking (LoUs). According to a Business Today report, BOI is the second lender bank to file a recovery lawsuit in the Hong Kong court since the third week of April. In connection with the same case, last month, Punjab National Bank (PNB) moved to Hong Kong Court.

The writ by Bank of India has been filed against Nirav Modi, and four of his companies, including Firestar Diamonds and Firestar Diamonds International. BOI moved the court in Hong Kong after the confirmation from the law enforcement agencies in India that Nirav Modi had fled to Hong Kong long time back.

Reportedly Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB of over Rs 13,000 crore through fraudulent LoUs. PTI reports highlight that, while China said, Hong Kong was free to accept India’s request to arrest Modi on the basis of the local laws of the region and legal agreements between the two. However, Hong Kong is part of the People’s Republic of China; it is an autonomous region with its own laws.

Letters of Undertaking are an assurance given by one party to another stating that it will fulfil the obligation that had been previously agreed on.

(The above story first appeared on LatestLY on May 10, 2018 09:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).