Who Is Nehal Modi? Fugitive Diamantaire Nirav's Brother Arrested In US Over PNB Scam Links

The authorities in the United States have arrested the fugitive diamantaire Nirav Modi's younger brother, Nehal Modi, following the extradition requests from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), reports news agency PTI, quoting officials on Sunday. On Friday, Nehal Modi, subject of a Red Notice issued by Interpol, was taken into custody on Friday, US officials told Indian authorities.

The next hearing is scheduled for July 17, during which Nehal Modi may seek bail—a move expected to be contested by US prosecutors, the officials said.

According to the report by PTI, the recent arrest stems from a joint extradition plea submitted by the ED and CBI. Led by US federal prosecutors, the proceedings are based on two charges—one count of money laundering under section 3 of the Prevention of Money Laundering Act (PMLA) and one count of criminal conspiracy under sections 120B (criminal conspiracy) and 201 (disappearance of evidence) of the Indian Penal Code.

Who Is Nehal Modi?

Nehal Modi was born and raised in Belgium's Antwerp and is fluent in English, Gujarati, and Hindi. He is wanted in India for allegedly laundering proceeds of crime on behalf of his brother, Nirav Modi, who remains incarcerated in a London prison, facing extradition proceedings to India. He is a part of the family's global diamond business and is wanted by the ED and CBI. He assisted his brother, Nirav, in the diversion of funds from what's known as the ‘PNB loan scam.'

According to news agency PTI, it is alleged that Nehal played a pivotal role in concealing and transferring large sums of illicit money via a labyrinthine web of shell companies and offshore transactions, in violation of Indian financial laws. He has been named as an accused in separate chargesheets filed by both the ED and the CBI.

Nehal has been charged with the destruction of evidence and knowingly and intentionally assisting Nirav Modi in his alleged illegal acts, the officials said.

Allegations Against Nehal Modi

Nehal Modi is an accused in the alleged Rs 13,000 crore Punjab National Bank (PNB) fraud—one of the biggest banking scams—reportedly orchestrated by him, Nirav Modi, and their uncle, Mehul Choksi, reports news agency PTI. Nirav Modi had, through his companies, siphoned off approximately Rs 6,498 crore from the PNB by issuing fraudulent letters of undertaking (LoUs), while the remaining amount was misappropriated by his uncle in a similar modus operandi, according to the CBI chargesheet, the report further states.

The ED has claimed that after the PNB scandal came to light, Nehal, along with Nirav Modi's close confidante and executive Mihir R Bhansali, transported 50 kg of gold and substantial cash from Dubai and instructed dummy directors not to reveal his identity to investigating authorities. Nehal Modi is listed as the accused number 27 in a supplementary chargesheet submitted by the CBI, which has accused him of destroying evidence in Dubai to cover up the alleged criminal conspiracy.

(With inputs from PTI.)

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