NEW DELHI: In an important development in 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, believed to be living in the United States, is the second in command in the Firestar Group after Nirav Modi and was actively involved in the diversion and laundering of the funds received from the 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 Enforcement Directorate and this will restrict his movement and empower member countries to arrest him.About his role, officials said that “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. “Funds transfer, rotation of goods, melting of metal, dismantling of jewellery and low quality jewellery production with high value declaration were done on his instructions only,” said a source.After the fraud was detected on January 31 this year, sources said, it was Bhansali who along with Nirav’s stepbrother Nehal Modi took 50 kg gold and substantial cash from Dubai and directed dummy directors not to reveal his name before the authorities.CBI and ED sources said that Bhansali also purchased property in the US having value around US dollars 7 million from the funds believed to be generated from PNB scam.Recently, a bankruptcy court in New York had recognized the claim of Punjab National Bank on the proceeds of any assets of Modi that are sold in the US and had ordered summons to be issued to Modi, Bhansali, Bhansali’s wife Rakhi and two other associates – Ajay Gandhi and Kunal Patel.