NEW YORK (Diya TV) — Nehal Deepak Modi, the younger brother of fugitive businessman Nirav Modi, was arrested in the United States on July 4. He faces serious charges linked to the ₹13,000 crore (about $1.5 billion) Punjab National Bank (PNB) scam—India’s biggest financial fraud.
The U.S. Department of Justice confirmed the arrest. Nehal, a Belgian national, was taken into custody after India filed a formal extradition request. The Interpol had also issued a Red Corner Notice at the request of Indian authorities.
Nehal Modi is charged with money laundering under the Prevention of Money Laundering Act (PMLA) and criminal conspiracy under Indian law. The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) say he played a major role in helping Nirav Modi launder illegal funds and destroy evidence.
Investigators accuse Nehal of using shell companies and overseas transactions to hide the crime proceeds. He allegedly moved diamonds worth $6 million, 150 boxes of pearls, and 50 kilograms of gold. He also handled over 3.5 million dirhams in cash in Dubai.
Officials say he worked closely with another accused, Mihir Bhansali, to smuggle these assets out of Dubai. After the scam came to light, Nehal reportedly destroyed digital records and removed all financial documents. He also allegedly directed dummy company directors not to name him during questioning.
Authorities claim he took part in tampering with witnesses. In one case, he allegedly sent witnesses to Cairo, took away their passports, and forced them to sign false papers. One witness was offered ₹20 lakh (about $25,000) to give fake testimony in a European court.
Nehal’s extradition hearing is scheduled for July 17. His legal team is likely to request bail, but U.S. prosecutors say they will oppose it.
The PNB fraud broke in 2018 and triggered major changes in India’s banking oversight. Nirav Modi, the scam’s primary accused, is currently in a London jail. Though a UK court approved his extradition, the process has stalled due to his repeated appeals.
Nirav was declared a fugitive economic offender in 2019. His uncle, Mehul Choksi, also an accused, fled India in 2018. He later took citizenship in Antigua and Barbuda. Recently, Belgian authorities briefly detained Choksi after another Indian extradition request, but legal challenges continue.
Earlier, Nehal Modi also faced charges in the U.S. In 2020, he was indicted in Manhattan for fraudulently acquiring diamonds worth $2.6 million.
Born in Antwerp, Belgium, Nehal Modi speaks English, Gujarati, and Hindi. He remains a key accused in India’s effort to prosecute those behind this scam.
