Nirav Modi’s Brother Nehal Arrested. Photo Credit: deccanherald
Nehal Modi, the brother of fugitive diamantaire Nirav Modi, has been arrested in the United States following an extradition request by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI). This high-profile arrest comes amid serious allegations of involvement in the ₹13,000 crore Punjab National Bank (PNB) fraud, one of India’s largest banking scams, and a prior $2.6 million diamond fraud conviction in New York, as reported by the Deccan Herald.
Arrest Details and Extradition Timeline
US authorities detained 46-year-old Nehal Modi on July 4, acting on a joint extradition request from the ED and CBI. He faces charges under the Prevention of Money Laundering Act (PMLA) and Indian Penal Code for criminal conspiracy, money laundering, and destruction of evidence in the PNB case. He will appear in court on July 17, where bail could be sought but likely opposed by US prosecutors.
New York Diamond Fraud Conviction in 2020
Nehal Modi’s arrest is not his first encounter with the law. In 2020, a New York court convicted him for defrauding a diamond company of $2.6 million by falsely claiming a procurement deal with a retail chain. He obtained diamonds on credit and subsequently pawned or sold them, using the proceeds for personal expenses. That conviction was upheld in 2023.
Role in the Punjab National Bank Scam
Investigators allege that Nehal played a crucial role in the PNB scam, working alongside Nirav Modi and fugitive uncle Mehul Choksi. Nehal is accused of helping set up shell companies, moving illicit funds overseas, and concealing assets like 50 kg of gold and massive cash transfers from Dubai. He allegedly destroyed digital evidence and directed dummy directors to hide his identity.
Legal Status and Interpol Red Notice History
A Belgian national by birth, Nehal was previously issued an Interpol Red Corner Notice in 2019 following charges from the ED. This was briefly withdrawn after a legal challenge but has since regained traction. His global diamond business and dual nationality have complicated extradition efforts. The current arrest marks a major breakthrough in India’s international pursuit of economic offenders.
How the Extradition Proceedings Will Unfold
India’s ED and CBI must now substantiate the allegations before US courts. Under the Mutual Legal Assistance Treaty (MLAT), the US prosecution will argue against bail, citing Nehal’s role in a cross-border fraud network. His bond hearing on July 17 may determine whether he remains in custody or is released under conditions.
Broader Implications in the Fraud Cases
Nehal’s arrest marks a crucial escalation in legal action against the Modi-Choksi network—alongside ongoing efforts to bring Nirav Modi back from the UK, where he has resisted extradition since his arrest in March 2019. Meanwhile, Indian authorities continue to seize assets under the Fugitive Economic Offenders Act, aiming to recover defrauded funds and establish legal accountability.
RBI and Banking Sector Reforms in Spotlight
The PNB fraud exposed systemic weaknesses in India’s public sector banking structure—particularly the misuse of Letters of Undertaking (LoUs) and the lack of effective oversight. Continued progress in these extradition cases reinforces the need for banking reforms, international cooperation, and improved tracking of cross-border transactions.
Financial Crime, Extradition, and Public Accountability
Nehal’s arrest is a symbolic win in India’s wider battle against economic fugitives. It reflects growing international resolve to deny safe haven to financial criminals. For Indian taxpayers and defrauded institutions, it also reaffirms that justice—though delayed—is being pursued through consistent legal effort.
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