Nehal Modi, Brother of Fugitive Nirav Modi, Arrested in the US Amid Extradition Efforts

Arrest of Nehal Modi

In a significant development, US law enforcement has apprehended Nehal Modi, the younger sibling of fugitive diamond merchant Nirav Modi, following extradition requests from Indian authorities, including the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).

Nehal Modi, who is currently the subject of an Interpol Red Notice, was taken into custody on Friday, as confirmed by US officials to their Indian counterparts.

A hearing regarding his case is set for July 17, where he may apply for bail, although US prosecutors are expected to oppose this request.

This arrest is a result of a collaborative extradition request made by the ED and CBI.

The charges against him include money laundering under the Prevention of Money Laundering Act (PMLA) and criminal conspiracy as per the Indian Penal Code.

At 46 years old, Nehal Modi is implicated in the massive Rs 13,000 crore Punjab National Bank (PNB) fraud, which is considered one of the largest banking scandals in India, allegedly orchestrated alongside his brother and their uncle, Mehul Choksi.

Nirav Modi reportedly misappropriated around Rs 6,498 crore from PNB through fraudulent letters of undertaking, while his uncle engaged in similar fraudulent activities.

Nehal Modi, who grew up in Antwerp, Belgium, is fluent in English, Gujarati, and Hindi. He is wanted in India for allegedly laundering illicit funds on behalf of his brother, who is currently imprisoned in London awaiting extradition.

It is claimed that Nehal Modi played a crucial role in hiding and transferring significant amounts of illegal money through a complex network of shell companies and offshore transactions, violating Indian financial regulations.

He has been named in separate chargesheets filed by both the ED and CBI.

According to the ED's chargesheet, Nehal Modi is accused of destroying evidence and knowingly assisting his brother in illegal activities.

Following the exposure of the PNB scandal, it is alleged that he, along with a close associate of Nirav Modi, transported 50 kg of gold and large sums of cash from Dubai, instructing dummy directors to conceal his identity from investigators.

Nehal Modi is identified as accused number 27 in a supplementary chargesheet by the CBI, which alleges he destroyed evidence in Dubai to obscure the criminal conspiracy.

In response to Indian authorities' requests, Interpol issued a Red Notice for Nehal Modi, making it publicly accessible to facilitate international cooperation in his apprehension.

A Red Notice requests the location and provisional detention of individuals pending extradition or similar legal actions.

Nehal Modi had previously contested the notice before the Commission for Control of Interpol's Files, but his appeal was dismissed after the CBI provided a detailed rebuttal.

The CBI has accused him of intimidating directors of Dubai-based shell companies used by Nirav Modi to create a facade of legitimate trade.

These individuals were allegedly coerced into relocating from Dubai to Cairo, during which evidence was destroyed, including phones and computers.

Employees of Nirav Modi's companies were reportedly forced to sign documents falsely claiming ownership of companies in Dubai and Hong Kong.

These companies were presented as engaged in legitimate transactions with Nirav Modi's firms, which are accused of unlawfully benefiting from buyer's credit issued by foreign banks based on fraudulent LoUs obtained from PNB.