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The police have already contacted the Indian Embassy in the United Arab Emirates for follow-up action so that he can be extradited.
However, neither Babu, nor his relatives have been able to substantiate the claims with evidence yet.
According to the Kochi Police, Babu is presently holed up in Georgia, which is a neighbour of Armenia.
After coming to know that his passport would be cancelled, Babu likely escaped to 'Georgia' from Dubai two days ago, as per the information obtained by the police.
The actor-producer has been in hiding since a rape case was filed by a Malayalam female actor.
The passport was cancelled by the Ministry on the basis of the report filed by the Kochi City Police.
Though the Kerala Police had completed the official procedures to arrest Babu with the assistance of the Interpol, it has not received the required support from the central agencies.
The local court here has issued an arrest warrant against him as a prelude to issuing a Red Corner Notice.
As Babu is now abroad, the police need diplomatic support to bring him to India.
The federal probe agency was working to bring him back to India for a long time in connection with the loan fraud case of PNB.