Nirav Modi’s Brother Nehal Arrested in US on India’s Extradition Request in PNB Fraud Case

US authorities arrested Nehal Deepak Modi, the younger brother of fugitive diamantaire Nirav Modi, on Friday, following extradition requests from India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), officials confirmed Saturday. The 46-year-old Belgian national, implicated in the ₹13,000 crore Punjab National Bank (PNB) fraud—one of India’s largest banking scams—faces charges of 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.

Nehal, born in Antwerp and fluent in English, Gujarati, and Hindi, is accused of laundering illicit funds through shell companies and overseas transactions, assisting his brother Nirav Modi, who remains in a London prison fighting extradition. The ED alleges Nehal, alongside Nirav’s aide Mihir Bhansali, moved 50 kg of gold and substantial cash from Dubai and instructed dummy directors to conceal his involvement. He is also charged with destroying evidence, including digital servers in the UAE, to obstruct the PNB scam investigation.

The CBI and ED’s joint extradition request, submitted in September 2024, led to Nehal’s arrest in New York, where he resided as director of the now-bankrupt Firestar Diamond Inc., once Nirav’s flagship firm. A US court hearing is scheduled for July 17, where Nehal may seek bail, though US prosecutors, acting on India’s behalf, are expected to oppose it.

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The PNB fraud, orchestrated by Nirav, Nehal, and their uncle Mehul Choksi, involved fraudulent Letters of Undertaking (LoUs), causing a $2 billion loss to the bank. While Nirav was arrested in London in March 2019 and lost his final extradition appeal in December 2022, his asylum plea in the UK remains pending. Choksi, arrested in Belgium in April 2025, also faces extradition. The ED has recovered ₹1,052 crore from Nirav’s assets, including properties and jewelry, as reported by Finance Minister Nirmala Sitharaman in December 2024.

Nehal’s arrest marks a significant step in India’s pursuit of justice in the PNB case, though his potential legal challenges in US courts could delay extradition.

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