US authorities have arrested Nehal Deepak Modi, the younger brother of fugitive diamond merchant Nirav Modi, in connection with the high-profile ₹13,000 crore Punjab National Bank (PNB) fraud case. The arrest follows an extradition request by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).
Nehal Modi, 46, was taken into custody on charges of money laundering and criminal conspiracy. He is Accused Number 27 in the CBI’s chargesheet and is alleged to have played a key role in destroying evidence and laundering proceeds of crime to protect his brother Nirav Modi, who remains jailed in the UK pending extradition.
Born and raised in Antwerp, Belgium, Nehal Modi was known in international circles as a prominent diamond trader. Fluent in English, Gujarati, and Hindi, he now faces serious criminal charges that could lead to extradition to India.
“Nehal laundered the proceeds of the crime on behalf of Nirav through a web of shell companies and offshore transactions,” the ED has stated.
According to investigators, Nirav Modi embezzled ₹6,498 crore from PNB through fraudulent Letters of Undertaking, while the remaining amount was misappropriated by his uncle, Mehul Choksi, using similar tactics.
The CBI’s supplementary chargesheet alleges that Nehal transported 50 kg of gold and a substantial amount of cash from Dubai, and destroyed critical evidence to hinder the investigation. He is also accused of intimidating directors of Dubai-based shell companies used in the fraud.
“These intimidated people, employees of Nirav Modi’s companies, were coerced into relocating from Dubai to Cairo, during which their phones, laptops and computer servers were destroyed to erase evidence,” reads the CBI report.
Nehal Modi’s next court hearing in the US is scheduled for July 17, where he is expected to seek bail. US prosecutors are likely to oppose his release, citing the gravity of the charges and flight risk concerns.
His arrest is a significant breakthrough for Indian agencies pursuing high-profile economic offenders living abroad and strengthens the case for international cooperation on financial crimes.