NEW DELHI/WASHINGTON — Nehal Modi, brother of fugitive diamond trader Nirav Modi, has been arrested in the United States following a formal extradition request filed by India’s Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) in connection with the ₹13,000-crore Punjab National Bank (PNB) fraud case.
Nehal was taken into custody on Friday by US authorities, officials confirmed. The arrest marks a significant development in India’s effort to bring back individuals allegedly involved in one of the biggest banking scams in the country’s history.
“The next hearing in the matter is scheduled for July 17, when Nehal Modi is expected to seek bail,” officials said, according to PTI. “However, US prosecutors will oppose his bail request.”
Nehal Modi’s Role in the Scam
Born and raised in Belgium, Nehal Deepak Modi is accused of helping his brother launder proceeds of crime and move illicit funds through a network of shell companies and offshore transactions.
His brother Nirav Modi, the prime accused in the PNB scam, is currently lodged in a UK prison, also facing extradition proceedings on India’s request. Nirav was arrested in London in 2019 and has been contesting India’s extradition since.
A Global Banking Fraud
The PNB fraud, uncovered in 2018, involved fraudulent Letters of Undertaking (LoUs) issued by officials of the Punjab National Bank to Nirav Modi’s companies without proper authorization or collateral. The scam shook India’s banking sector and triggered a nationwide crackdown on economic offenders.
Nehal’s involvement was unearthed during the ED and CBI investigations, which revealed that he allegedly played a key logistical and financial role, helping Nirav move funds and evade law enforcement.
“Nehal is alleged to have assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions,” officials stated.
The Indian government has welcomed the arrest and is expected to push for Nehal Modi’s extradition to face trial in India.
More developments are expected in the coming weeks as the US court prepares to hear arguments regarding bail and extradition proceedings on July 17.