Nehal Modi, brother of fugitive diamantaire Nirav Modi, has been arrested in the United States in connection with the multi-billion-dollar Punjab National Bank (PNB) scam. His arrest on July 4 was made by US authorities following a joint extradition request by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), the United States Department of Justice confirmed.
Nehal Modi is accused of playing a key role in laundering criminal proceeds for his brother Nirav Modi, who is also facing extradition proceedings in the United Kingdom. The PNB scam, amounting to over USD 2 billion, is one of the biggest financial frauds in India’s banking history.
According to the US prosecution’s complaint, Nehal Modi is being sought on two specific charges: money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code (IPC).
Investigations by the ED and CBI have revealed that Nehal was instrumental in helping Nirav Modi transfer and conceal illicit funds using a complex web of shell companies and overseas financial transactions.
The US court has scheduled the next hearing in the extradition case for July 17, when a status conference will be held. Nehal may apply for bail during this session; however, US prosecutors have indicated they will oppose any such plea.
Nirav Modi, the prime accused in the case, remains in a UK prison and is contesting extradition to India on related charges.