New Delhi: In a significant breakthrough in the Punjab National Bank (PNB) scam case, US authorities have arrested Nehal Modi, the younger brother of fugitive diamantaire Nirav Modi, based on extradition requests submitted by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
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Arrest Based on Charges of Money Laundering and Criminal Conspiracy
Nehal Modi, 46, was taken into custody on Friday, and the US authorities have informed their Indian counterparts. The arrest follows a joint extradition request by the ED and the CBI, seeking to bring Nehal to India to face charges.
The extradition proceedings are based on two primary charges:
- Money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002
- Criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code (IPC), which relate to conspiracy and destruction of evidence.
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Next Court Hearing Scheduled for July 17
The case will come up for hearing on July 17, when Nehal Modi is expected to seek bail. However, US prosecutors are likely to oppose the bail request, citing the gravity of the charges and the risk of flight.
Key Accused in ₹13,000 Crore PNB Scam
Nehal Modi is a key accused in the alleged ₹13,000 crore fraud involving Punjab National Bank, one of the largest banking scams in Indian history. The fraud was reportedly orchestrated by Nirav Modi, his brother Nehal, and their uncle Mehul Choksi.
Nehal is accused of laundering proceeds of crime on behalf of his brother and using a network of shell companies and overseas transactions to conceal and transfer illicit funds in violation of Indian financial laws.
Charge Sheet and Role in Evidence Destruction
The ED has named Nehal in its charge sheet, alleging that he knowingly and intentionally assisted Nirav Modi in the commission of illegal acts. He is also accused of destroying evidence linked to the fraud.
According to officials, after the scam was exposed, Nehal — along with Mihir R Bhansali, a close aide of Nirav — allegedly moved 50 kg of gold and substantial cash from Dubai and instructed dummy directors of the companies involved not to disclose his name to authorities.
Background of Nehal Modi
Nehal Modi was born and raised in Antwerp, Belgium, and is fluent in English, Gujarati, and Hindi. He has been wanted in India for several years and was believed to be assisting his brother in evading Indian law enforcement agencies.
His arrest in the US marks a crucial step in India’s pursuit of justice in the PNB bank fraud case, as efforts continue to extradite Nirav Modi from the UK and Mehul Choksi from the Caribbean.
India’s enforcement agencies are expected to closely follow the developments of the extradition proceedings and continue coordination with US counterparts to ensure Nehal Modi is brought to India to face trial.
