NEW DELHI/WASHINGTON, July 5 — Nehal Deepak Modi, the younger brother of fugitive diamantaire Nirav Modi, was arrested in the United States on July 4 on the basis of an extradition request jointly submitted by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), officials confirmed Saturday.
The arrest marks a significant step in India’s efforts to bring back key accused in the ₹13,000 crore Punjab National Bank (PNB) fraud—one of the country’s biggest banking scams. US authorities took Nehal, 46, into custody after federal prosecutors initiated extradition proceedings against him on charges of money laundering and criminal conspiracy.
He faces one count under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and another under Sections 120-B (criminal conspiracy) and 201 (destruction of evidence) of the Indian Penal Code.
Sources said Nehal’s next court hearing is scheduled for July 17, where he is likely to seek bail. However, US prosecutors are expected to oppose any release, citing the seriousness of the charges and the ongoing extradition process.
According to Indian investigators, Nehal played a central role in laundering and concealing the illicit proceeds of the PNB scam, allegedly orchestrated by his brother Nirav Modi and uncle Mehul Choksi. Nehal is accused of facilitating the transfer of large sums of money across international borders through a network of shell companies and dummy directors.
“He knowingly and intentionally assisted Nirav Modi in concealing the proceeds of crime,” an ED official said, adding that Nehal was also involved in destruction of evidence after the scam surfaced in 2018.
Investigators said that after the fraud came to light, Nehal, along with Nirav’s key aide Mihir R Bhansali, moved 50 kg of gold and large amounts of cash from Dubai, while instructing operatives to avoid mentioning his name to authorities.
Born and raised in Antwerp, Belgium, Nehal Modi is fluent in English, Gujarati, and Hindi. He has been named in the ED’s charge sheet and has remained on the agency’s wanted list since his brother’s extradition case began in the UK, where Nirav Modi remains in custody in a London prison.
With this arrest, Indian authorities see new momentum in the multi-agency crackdown on those involved in the sprawling international fraud.
