• Source:JND
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In a major breakthrough for Indian agencies, Nehal Modi, the brother of fugitive diamantaire Nirav Modi, has been arrested in the United States on the basis of a joint extradition request by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI). The 46-year-old has been under Indian authorities' radar for his suspected role in the multi-billion-dollar Punjab National Bank (PNB) fraud, one of India's largest banking scams as well as a parallel 2.6 million USD New York diamond fraud.

He has been under an Interpol Red-Corner Notice since 2019. He is charged with laundering money, hiding assets like cash and gold, and plotting to intimidate witnesses associated with the PNB fraud case. The United States Department of Justice confirmed the arrest, saying that Nehal was arrested on July 4 in accordance with the extradition request of India.

Who Is Nehal Modi?

Born and brought up in Antwerp, Belgium, and fluent in English, Gujarati, and Hindi, Nehal Deepak Modi is wanted in India for laundering proceeds of chas been under an Interpol Red-Corner Notice since 2019. He is charged with laundering money, hiding assets like cash and gold, and plotting to intimidate witnesses associated with the PNB fraud case. The United States Department of Justice confirmed the arrest, saying that Nehal was arrested on July 4 in accordance with the extradition request of India.rime on behalf of his brother, Nirav Modi, who is lodged in a London prison facing extradition proceedings from the UK on an Indian request. He has been chargesheeted in India under the Indian Penal Code (IPC) and Prevention of Money Laundering Act (PMLA). He is charged with being a key accused in helping his brother Nirav Modi launder crime proceeds through shell firms and international transactions. Nirav Modi, the prime accused in the PNB fraud, is already under extradition proceedings in the UK for having allegedly masterminded the multi-billion-dollar scam that shook India's banking industry. Besides the PNB scam, Nehal Modi had previously been indicted in the US for defrauding LLD Diamonds USA by 2.6 million USD. Nehal allegedly obtained expensive diamonds under the guise of sealing a supply agreement with retail giant Costco, a deal that never went through. Modi then pawned and sold the diamonds for his own gain, breaching payment terms with the company. It has been alleged that the fraud was orchestrated by the two brothers and their uncle Mehul Choksi.

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Nehal has been named in the charge sheet filed by the ED in this case and has been charged with destruction of evidence and "knowingly and intentionally" assisting Nirav Modi in his alleged illegal acts, they said. The US prosecution alleges Nehal Modi is extradited on one charge of money laundering under Section 3 of PMLA, 2002, and one criminal conspiracy under Sections 120-B and 201 of the IPC. A status conference is organized for July 17, 2025, where Nehal Modi can file a bail application. The US prosecution has stated it will strongly oppose the bail plea.

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The arrest of Nehal Modi is a big win for Indian agencies, who have been looking to extradite him to India to stand trial for his involvement in one of India's largest financial scams. The ED alleged that after the PNB fraud came to light, Nehal, along with Nirav's close confidante and executive Mihir R Bhansali, "took 50 kg gold and substantial cash from Dubai, and directed dummy directors not to reveal his name before the authorities," they said. Officials from the CBI and ED have expressed hope that this arrest will strengthen India’s case in bringing the entire network behind the PNB scam to justice.