The Central Bureau of Investigation (CBI) has arrested Sandeep Bharat Mistry, an associate of fugitive diamantaire Nirav Modi, following his deportation from the United Arab Emirates in connection with the multi-billion-dollar Punjab National Bank (PNB) fraud case, officials said on Tuesday. Mistry was wanted by both the CBI and the Enforcement Directorate (ED) over his alleged involvement in the financial fraud, which centred on fraudulent Letters of Undertaking and overseas transactions linked to companies associated with Modi. According to investigators, Mistry allegedly played a key role in coordinating the operations of entities connected to the Nirav Modi business network.

A CBI officer said he acted as a link between various companies and was involved in their day-to-day functioning. The agency has also alleged that Mistry issued instructions through clandestine, self-deleting communication platforms in an attempt to conceal evidence and limit the availability of records to investigators. Mistry had remained outside India while agencies pursued the wider PNB fraud investigation. The CBI had previously named him as an accused in a supplementary chargesheet filed in 2019, along with Nirav Modi's brother Nehal Modi and other associates.

The agency had alleged that companies based in Dubai and Hong Kong were used in transactions connected to the fraudulent procurement of credit through PNB's Mumbai branch. The PNB case involves allegations that fraudulent banking instruments, including Letters of Undertaking (LoUs), were used to obtain credit from overseas branches of Indian banks. The investigation has covered several companies and individuals associated with Nirav Modi and his business operations. Mistry's alleged role, according to the CBI, involved facilitating coordination between different entities and helping manage their activities while investigators were examining the transactions.

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The ED has also pursued proceedings against Mistry under the Fugitive Economic Offenders framework. In February, the agency moved a special court seeking to have Mistry and another senior executive of Modi's firms declared fugitive economic offenders. Such a declaration can allow authorities to pursue attachment or confiscation of assets under the relevant law. The arrest comes as Indian agencies continue pursuing individuals linked to the long-running PNB fraud investigation across jurisdictions. Nirav Modi, the principal accused in the case, remains in the United Kingdom.

In March 2026, a UK High Court rejected his attempt to reopen proceedings against his extradition to India, bringing his return closer but leaving separate legal proceedings to be completed. The CBI's arrest of Mistry is expected to allow investigators to question him about the functioning of the overseas entities, communications with other accused persons and the movement of funds connected with the alleged fraud. The investigation into the wider case remains ongoing, with several individuals and companies having been examined by Indian agencies over their alleged roles in the transactions.

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