Nehal Modi, co-accused in PNB scam case, arrested in the U.S.

 Nehal Modi, co-accused in PNB scam case, arrested in the U.S.

Nehal Modi, the younger brother of fugitive businessman Nirav Modi and a key figure in the ₹13,578 crore Punjab National Bank (PNB) scam, has been arrested in the United States. His arrest follows a joint extradition request made by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).

U.S. authorities, acting on the Indian request, took Nehal into custody on July 4. The Department of Justice informed Indian officials about the arrest, which marks a significant step forward in one of India’s biggest bank fraud cases.

The U.S. prosecution has initiated extradition proceedings against Nehal Modi on two main charges — money laundering under India’s Prevention of Money Laundering Act and criminal conspiracy under sections of the former Indian Penal Code. Investigations by the ED and CBI suggest that Nehal played a critical role in helping his brother Nirav move and hide large sums of money through shell companies and cross-border transactions.

According to Indian officials, Nehal not only laundered money but also destroyed digital evidence and pressured witnesses. In one case, he allegedly sent key witnesses to Cairo and had their passports confiscated to keep them from returning to India. In another instance, he reportedly offered ₹20 lakh to someone in exchange for false testimony in Europe.

The authorities also found that Nehal helped run two companies linked to Nirav Modi that received $50 million from fake firms. After the scam came to light, Nehal is said to have smuggled out $6 million worth of diamonds, 150 boxes of pearls, 50 kilograms of gold, and 3.5 million dirhams from a Dubai-based company tied to the Modi business empire.

He’s now facing a court hearing scheduled for July 17 in the U.S., where he may seek bail. However, the prosecution has already indicated it will oppose his release.

Meanwhile, Nirav Modi remains in a U.K. prison, still fighting his extradition to India. Nehal is also under investigation for his role in another case involving their uncle Mehul Choksi. In that matter, Nehal allegedly managed two U.S.-based companies that received $19 million from shell companies operated by Choksi out of Dubai.

The arrest of Nehal Modi could bring Indian authorities closer to unraveling the full scope of the PNB scam and holding all those involved accountable.