NEW DELHI: In a significant development in the Punjab National Bank scam, the Interpol has issued a red corner notice ( RCN ) against Mihir R Bhansali, the right-hand man of fugitive diamantaire Nirav Modi Sources in investigating agencies said that Bhansali, said to be living in the US, is second in command in the Firestar Group after Nirav Modi and was actively involved in the diversion and laundering of the funds received from fraudulently issued PNB letters of undertaking (LoUs). "He is a close confidant of Nirav Modi and head of US operations, where he was instrumental in the rotation and diversion of the funds," said an official.The international arrest warrant (RCN) against Bhansali, who was also the CEO of Modi's company Firestar International, has been issued on the request of ED and this will restrict his movement and empower member countries to arrest him.Officials said "with the help of other officials of Firestar Group, Bhansali inducted dummy partners in Solar Exports, Stellar Diamond and Diamond R US (firms in whose names LoUs were issued).""He was instrumental in formation of overseas dummy companies in Hong Kong and Dubai and employees/ex-employees of Firestar Group were sent as dummy directors/owners in these entities on his directions," said an officer.Further, a secure internal email communication system was developed at his instance and its server was deliberately kept in Dubai for any eventuality. Sources said it was Bhansali who along with Nirav's stepbrother Nehal Modi took 50kg gold and substantial cash from Dubai and asked dummy directors not to reveal his name before the authorities.