In a major breakthrough for Indian investigative agencies, Nehal Deepak Modi, the younger brother of fugitive businessman Nirav Modi, was arrested in the United States on July 4. The arrest was made following a Red Corner Notice issued by Interpol at the request of India’s Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
A Belgian national, Nehal Modi had been evading Indian authorities for years, allegedly playing a crucial role in the multi-billion rupee Punjab National Bank (PNB) fraud case. His arrest comes after multiple legal challenges to the Red Corner Notice, all of which were ultimately unsuccessful.
According to Indian authorities, Nehal Modi is accused of laundering thousands of crores of rupees obtained from the PNB scam, using a network of shell companies and international transactions. The Enforcement Directorate has also alleged that he aided Nirav Modi in destroying key evidence and intimidating witnesses during the probe into the 2018 scam.
The PNB scam, one of India’s largest banking frauds, caused an estimated loss of over ₹13,500 crore (approximately USD 2 billion). Nirav Modi is accused of diverting ₹6,498.20 crore, while his uncle Mehul Choksi is linked to ₹7,080.86 crore of fraudulent transactions. Both fled India just before the scam was reported to law enforcement.
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Nehal’s extradition hearing is scheduled for July 17 in a US court. While a bail application may be filed, US prosecutors have already stated their intent to oppose any such move.
Fugitive Family Members Face Separate International Proceedings
Nirav Modi was arrested in the United Kingdom in March 2019 and is currently lodged in a London prison as he contests extradition to India. Mehul Choksi, who is residing in Antigua, faces a separate legal battle including challenges to his citizenship status.
The arrest of Nehal Modi marks a significant step forward for Indian authorities in their efforts to bring the perpetrators of the PNB scam to justice and recover the defrauded funds.
