New Delhi, July 5 Fugitive diamantaire Nirav Modi's younger brother, Nehal Deepak Modi was arrested in the United States following an extradition request from the Indian Central agencies, sources said.
Acting on a Red Corner Notice issued by Interpol at the request of Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), Nehal Modi was arrested on July 4 in the US by local authorities.
Nehal Modi, a Belgian national, aged 46 is accused of aiding his brother, Nirav Modi, in orchestrating one of India’s largest banking frauds -- the Rs 13,500 crore Punjab National Bank (PNB) scam.
Indian authorities allege that Nehal Modi played a crucial role in helping his elder brother, Nirav destroying key evidence, intimidate witnesses and obstruct the investigation in the aftermath of the scandal.
Nehal is accused of laundering black money earned from this PNB scam that became a national headline in 2018, with the help of his brother. According to investigators, he funnelled illicit funds through shell firms and transactions done abroad.
According to sources, the next hearing in this case is scheduled for July 17, 2025 during which Nehal may seek bail—though prosecutors have already reserved the right to oppose it.
It is pertinent to note here that the PNB scam is estimated to have caused losses of over Rs 13,500 crore to the Indian banking system. Of this, Nirav Modi is accused of siphoning off Rs 6,498.20 crore, while his uncle Mehul Choksi is alleged to have diverted Rs 7,080.86 crore.
Both Nirav Modi and his uncle Choksi fled India in January 2018, weeks before PNB reported the irregularities to the law enforcement.
Both of them face several cases, with Nirav Modi, arrested in UK in 2019 and remaining in custody in a London prison while Choksi, who is now in Antigua, faces separate proceedings including a challenge to his citizenship.
This dramatic arrest underscores the international coordination underpinning financial crime investigations and brings renewed attention to one of the most notorious banking scandals in Indian banking history.
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