The Financial Times newspaper reported on Sunday that Mr Modi, 47, who has been on the run since the scandal broke in February, had sought asylum in Britain for what he called "political persecution". The "CBI has no confirmation yet about Nirav Modi's whereabouts", an official said. Unequal standards: India and UK signed a mutual extradition treaty way back in 1993; but while India did extradite a UK national, Maninderpal Singh Kohli, in the Hannah Foster murder case in 2008, UK has been stonewalling all of India's extradition requests, including of British national Raymond Varley, who's accused of child abuse in Goa.
Britain's Home Office said it does not provide information on individual cases.
Stars such as Kate Winslet, Rosie Huntington-Whiteley and Naomi Watts, have been seen wearing his products.
The development came just as the Central Bureau of Investigation, which probing the multi-crore fraud case, moved the Interpol seeking a red corner notice against Modi and his jeweller uncle Mehul Choksi, who is also a prime accused in the case.
Indian police issued a warrant for the billionaire diamond trader's arrest.
Punjab National Bank has alleged that two jewelry groups headed by Nirav Modi and his uncle Mehul Choksi defrauded it of about US$2.2 billion via transactions that date back to 2011.
The Enforcement Directorate, India's financial fraud-investigating agency, had unsuccessfully approached Interpol in March for an global arrest warrant.
He is the third Indian fugitive after beleaguered liquor baron Vijay Mallya and former IPL commissioner Lalit to have fled to that nation.
India's government is trying to reduce the crippling debts of the country's embattled state banks, including PNB.
Union Minister of State for Home Kiren Rijiju is learnt to have told U.K. Minister Baroness Susan Williams on Monday that he was absolutely "aghast and shocked" at the unfortunate incident relating to the desecration of the Indian flag at Parliament Square by "miscreants in the presence of Metropolitan Police" during the PM's visit to the U.K.in April.
The losses were largely because it had to set aside funds to pay the other banks for the illegal guarantees issued in the scam.