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Red Corner notice against Rastogi brothers

Sumir Kaul in New Delhi

The Central Bureau of Investigation has secured a Red Corner notice against two Rastogi brothers -- London-based Virender Rastogi and Dubai-based Ravinder Rastogi -- for allegedly seeking duty drawback of over Rs 1.5 billion from false export consignments.

The proceedings for their extradition or deportation from Britain and Dubai can now be expedited, CBI sources said.

The CBI move comes within two months of the US Federal Bureau of Investigation arresting their brother Narendra Rastogi for an alleged bank fraud.

The agency had moved France-based Interpol for issuance of Red Corner notice against them after filing charge sheet against the brothers in the duty drawback scam in Chennai and Mumbai courts, they said.

The two were also served non-bailable warrants by a Delhi court, which was kept in abeyance as their counsel had stated that they would be appearing before the court. The government has already moved extradition proceedings for Virender Rastogi and has informed the British authorities about revocation of his passport following the two charge sheets against him and others in the scam.

The extradition papers were routed to the Scotland Yard police through the Ministry of External Affairs.

The CBI has also moved the papers for extradition or deportation of Ravinder and their associates in Moscow and Britain. Virender has expressed his readiness to cooperate with CBI investigation by meeting them in London, but the agency has asked him to make himself available with the Economic Offences Wing in Mumbai.

He, along with three other brothers, is alleged to have floated 15 Delhi-based export companies in collusion with certain customs officials, which exported bicycle parts to Russia and Hong Kong from Mumbai in 1995-96 at an exorbitant price and claimed excessive duty drawback on such exports estimated to be about Rs 430 million, causing a loss to the government.

The third brother, Narender, was arrested by the FBI for defrauding banks around the world of an estimated $600 million by obtaining finance for sham transactions and then pledging them as collateral for loans.

The CBI has also sent in a request to the US authorities for his deportation or extradition. The CBI had alleged that the brothers used to export scrap material but claimed duty drawback on cycle spare parts.

The fourth brother, Subash Rastogi, was arrested by the CBI on September nine last year and was presently out on bail.

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