Nehal Modi, fugitive Nirav's brother, arrested in US on CBI, ED extradition request

Nirav Modi's brother Nehal Modi was arrested in the US on Saturday, July 5, upon an extradition request jointly submitted by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), said officials.

The next date for the hearing in the matter is July 17, when Nihal may seek bail, which however will be opposed by US prosecutors, officials told news agency PTI.

In December 2020, the fugitive diamantaire's younger brother Nehal Modi had been indicted in Manhattan, US for fraudulently obtaining diamonds worth over $2.6 million from one of the world's biggest diamond companies.

Charges against Nehal Modi

Aged 46-years, Nehal Modi is accused in an alleged ₹13,000 crore fraud — one of the largest such — involving the Punjab National Bank.

It has been alleged that the fraud was orchestrated by the two brothers and their uncle Mehul Choksi.

Nirav Modi's brother has been alleged to have assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions, in violation of Indian laws, officials said.

Named in the ED's chargesheet filed in the case, Nehal Modi has also been charged with destruction of evidence and "knowingly and intentionally" assisting Nirav Modi in his alleged illegal acts, as per officials, reported PTI.

After the ₹13,000-crore PNB scam came to light, the ED alleged that Nehal, along with Nirav's close confidante and executive Mihir R Bhansali transported 50 kg of gold and large amounts of cash out of Dubai — and instructed dummy directors to avoid naming him to authorities.

Charges for extradition proceedings

The extradition proceedings led by the US prosecutors were taken up on two charges – one count of money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and one count of criminal conspiracy under Sections 120-B (criminal conspiracy) and 201 (disappearance) of the Indian Penal Code.

Nehal Modi wanted in India

Born and brought up in Antwerp, Belgium, and fluent in English, Gujarati, and Hindi, Nehal Deepak Modi is wanted in India for laundering proceeds of crime on behalf of his brother, Nirav Modi, who is lodged in a London prison facing extradition proceedings from the UK on an Indian request.