Official sources said the global police body asked the central probe agency why it wanted an arrest warrant against the duo.
They said the agency replied to the international police that the two are required for taking forward the criminal probe launched by it against them on money laundering charges, and not for a court trial.
While the agency had furnished these details in its application to the Interpol some time ago, the global body still had some queries, they said.
The agency had sought an Interpol warrant against the two diamond traders based on a Mumbai court-issued non-bailable warrants against them in a case registered under the Prevention of Money Laundering Act (PMLA).
A Red Corner Notice is issued to seek the location and arrest of wanted persons for extradition or similar lawful action in a criminal case probe.
A special court in Mumbai had issued non-bailable warrants early this month on the request of the Enforcement Directorate.
The ED had earlier issued summonses to Mr Modi and Mr Choksi -- the key accused in the scam -- asking them to appear before it in Mumbai.
However, both of them expressed their inability to depose citing business engagements and that their passports were revoked by the government.
Both are accused of money laundering (under the Prevention of Money Laundering Act) in alleged connivance with some employees of the Punjab National Bank (PNB) and have been stated by the probe agencies to have left India before criminal charges were pressed against them.