Nehal Modi, the younger brother of fugitive businessman Nirav Modi, has been arrested in the United States after Indian authorities requested his extradition. He was arrested on 4 July following a request made by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
Why Was Nehal Modi Arrested?
Indian authorities want to bring Nehal back to India to face two major charges:
- Money laundering under the PMLA (Prevention of Money Laundering Act), 2002
- Criminal conspiracy under the Indian Penal Code (IPC)
Nehal is a key accused in the massive ₹13,000 crore Punjab National Bank (PNB) scam, one of India’s biggest bank frauds.
Read more: CBI Files Case Against Former JNPT Officials and Tata Firm Over ₹800 Crore Dredging Scam
How is He Connected to the Scam?
- Nehal Modi was born and raised in Antwerp, Belgium, and speaks English, Gujarati, and Hindi.
- Along with his brother Nirav Modi and uncle Mehul Choksi, Nehal played a major role in siphoning off huge sums of money from PNB using fake companies and illegal overseas transactions.
- His companies alone are believed to have illegally taken ₹6,498 crore by fraudulently obtaining Letters of Undertaking (LoUs).
- These LoUs were used to get credit from foreign banks, with help from insiders at PNB.
What Else is He Accused Of?
- Destroying evidence and helping Nirav hide after the scam was exposed.
- Threatening and pressuring directors of fake companies in Dubai to stay silent.
- Smuggling 50 kg of gold and a large amount of cash from Dubai with Mihir Bhansali (Nirav’s close associate).
- Telling dummy directors not to reveal his identity to Indian investigators.
- Forcing employees to move to Cairo, where they destroyed phones, laptops, and servers to hide digital evidence.
- Making people sign false papers claiming to own companies that were actually controlled by the Modi family.
These fake companies were shown as doing export-import business with Nirav Modi’s firms like Diamonds R Us, Solar Exports, and Stellar Diamonds to make their operations look legal.
Also See: ₹900 Cr Laundering via Fake App ‘LOXAM’: Delhi Man Booked by ED
Nehal Modi is named as Accused No. 27 in the CBI’s chargesheet. His extradition hearing is set for 17 July 2025 in the US, where a court will hold a status meeting. Nehal may apply for bail, but US authorities have said they will oppose it.
