Nehal Modi, brother of fugitive Nirav Modi, was arrested in the US on India’s extradition request. Accused in the ₹13,500 crore PNB scam, he faces charges of money laundering and criminal conspiracy. His arrest marks a major step in the global pursuit of financial crime fugitives.
In a significant development in the ₹13,500 crore Punjab National Bank (PNB) fraud case, Nehal Deepak Modi, the younger brother of fugitive diamond merchant Nirav Modi, was arrested in the United States on July 4. The arrest follows an extradition request from Indian authorities, backed by a Red Corner Notice issued by Interpol at the behest of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
Nehal Modi, a 46-year-old Belgian national, is accused of playing a pivotal role in one of India’s biggest banking scandals. The PNB scam came to light in early 2018 and involved fraudulent Letters of Undertaking (LoUs) issued by PNB officials to benefit Nirav Modi and his associates. The scandal caused an estimated loss of over ₹13,500 crore to the Indian banking system.
According to official sources, Nehal Modi not only helped his brother flee India but was instrumental in laundering black money, destroying critical evidence, intimidating witnesses, and obstructing the investigation process. Indian agencies have alleged that he operated through a complex network of shell companies and overseas financial channels to transfer and conceal proceeds of crime.
The Enforcement Directorate confirmed that the extradition request was made on two primary charges — money laundering and criminal conspiracy. A complaint to this effect has been formally filed by US prosecutors, and extradition proceedings are now underway. The US Department of Justice has informed Indian authorities of Nehal’s arrest and scheduled the next court hearing on July 17, 2025. During this status conference, Nehal is expected to apply for bail, although the US prosecution has reserved the right to oppose any such motion.
The ED and CBI have both underscored the critical role played by Nehal Modi in facilitating his brother Nirav’s financial crimes. While Nirav Modi was arrested in the United Kingdom in 2019 and continues to fight his extradition from a London prison, his uncle and co-accused Mehul Choksi is believed to be residing in Antigua, where he too faces separate legal battles, including a case concerning the legitimacy of his Antiguan citizenship.
The PNB scam involved Nirav Modi allegedly siphoning off ₹6,498.20 crore, while his uncle Choksi reportedly diverted ₹7,080.86 crore. Both fled India in January 2018, just weeks before the banking irregularities were officially reported to the authorities.
Nehal Modi’s arrest marks a turning point in the international effort to bring all key conspirators of the PNB scam to justice. Officials emphasize that this arrest reflects growing global cooperation in financial crime investigations and the pursuit of economic offenders who attempt to exploit cross-border complexities to escape accountability.
Experts say this high-profile extradition case could set a legal precedent for similar cases involving fugitive economic offenders. It also signals the Indian government’s commitment to pursue such fugitives aggressively and ensure they face trial, regardless of where they are located.
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Meanwhile, Indian agencies are expected to continue liaising closely with their American counterparts to ensure a successful extradition. If approved, Nehal Modi will be brought to India to face trial alongside other accused in the multi-billion-dollar banking scam that shocked the nation and prompted a reassessment of banking oversight mechanisms.
