New Delhi/Washington (National Times): In a major development in the ongoing probe into the Rs 13,000 crore Punjab National Bank (PNB) fraud, Nehal Modi, brother of fugitive businessman Nirav Modi, has been arrested in the United States following an extradition request by Indian authorities.
The arrest, confirmed by officials from India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), was carried out after U.S. law enforcement authorities accepted India’s formal request seeking his custody in connection with money laundering and conspiracy charges.
Nehal Modi has long been accused of playing a key role in helping Nirav Modi escape India in early 2018 and allegedly assisting in laundering the proceeds of crime across multiple jurisdictions. Indian investigators claim Nehal was involved in creating shell firms, concealing assets, and tampering with digital evidence related to the scam.
A senior ED official said,
“Nehal Modi has been instrumental in managing the global trail of funds related to the PNB fraud. His arrest is a significant step forward in holding all accomplices accountable.”
The extradition process has now begun, with the U.S. court expected to hear the matter in the coming weeks. Indian agencies are likely to submit further documents and legal representations to expedite the proceedings.
Nirav Modi, the primary accused in the scam, remains in a UK prison while fighting his extradition to India. He has already been declared a fugitive economic offender by an Indian court.
Meanwhile, Nehal Modi also faces separate criminal charges in the U.S. in connection with a $2.6 million fraud case involving luxury diamond sales. His arrest under India’s extradition request could now pave the way for coordinated legal action on both sides of the Atlantic.
The PNB scam, which came to light in 2018, involved fraudulent issuance of Letters of Undertaking (LoUs) and led to massive regulatory overhauls in India’s public banking sector.
Officials in New Delhi have welcomed the development, seeing it as renewed momentum in India’s campaign to bring back economic fugitives. The Ministry of External Affairs and the Ministry of Home Affairs are reportedly coordinating closely with U.S. authorities to ensure swift extradition.
