Nehal Modi, Brother of Fugitive Nirav Modi, Arrested in US; India Initiates Repatriation

Nehal Deepak Modi, a key accused in the Punjab National Bank scam and brother of fugitive diamond merchant Nirav Modi, has been arrested in the United States. Preparations to extradite him to India are now underway.

Nehal Modi Arrested: Nehal Modi, brother of fugitive diamond merchant Nirav Modi, has been arrested in the United States in connection with the multi-crore Punjab National Bank (PNB) scam. This marks a significant diplomatic victory for India. According to the US Department of Justice, Nehal Modi, a Belgian citizen, was taken into custody on 4 July. The US prosecution complaint alleges two charges against him: money laundering under Section 3 of the PMLA, and criminal conspiracy and destruction of evidence.

₹13,500 Crore Scam

Nirav Modi, his uncle Mehul Choksi, Nehal, and others are wanted by the CBI and the Enforcement Directorate (ED) for allegedly defrauding PNB of approximately ₹13,500 crore using fraudulent Letters of Undertaking (LOUs). While Nirav Modi’s extradition has already been approved by the UK High Court, the process of bringing him to India is delayed due to several appeals filed by him.

Preparations Continue to Bring Nirav Modi to India

Nirav, currently imprisoned in London, was declared a fugitive economic offender in 2019. Earlier this year, the Belgian government stated that 65-year-old Choksi was arrested in Antwerp following India’s extradition request. Choksi fled India in 2018 and has since been residing as a citizen of Antigua and Barbuda.

Next Hearing in Extradition Proceedings Scheduled for 17 July

The charges against Nehal Modi stem from ED and CBI investigations which revealed his crucial role in laundering the proceeds of crime on behalf of Nirav Modi. He now faces extradition from the UK. He is accused of assisting in concealing and transferring large sums of illicit money through a network of shell companies and complex foreign transactions to hide the proceeds of crime. The next hearing in the extradition proceedings is scheduled for 17 July. During this hearing, Nehal is likely to apply for bail. The US prosecution has stated that it will oppose his application.