Nirav Modi’s brother arrested in US for Rs 13,000 cr PNB fraud

Fugitive diamantaire Nirav Modi’s younger brother Nehal Modi has been arrested by the US authorities following extradition requests from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), officials said on Saturday.

Arrested on Friday, Nehal’s extradition proceedings were based on two charges—one count of money laundering under Section 3 of the Prevention of Money Laundering Act and one count of criminal conspiracy under Sections 120B (criminal conspiracy) and 201 (disappearance of evidence) of the Indian Penal Code.

The next hearing in the matter is scheduled for July 17, during which Nehal (46), a Belgian national, may seek bail, a move expected to be contested by US prosecutors, the officials said. Nehal 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 and their uncle Mehul Choksi.

Born and raised in Belgium’s Antwerp, Nehal is wanted for allegedly laundering proceeds of crime on behalf of Nirav, who is lodged in a London prison and is facing extradition proceedings to India. Investigations by the ED and the CBI revealed that Nehal played a key role in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions in violation of Indian laws, the officials said.

Nehal has been named as an accused in separate chargesheets filed by both the ED and the CBI. In the ED chargesheet, he has been charged with destruction of evidence and “knowingly and intentionally” assisting Nirav in his alleged illegal acts, the officials said.

After the fraud came to light, Nehal allegedly took away diamonds worth $6 million and 150 boxes of pearls from Hong Kong, and AED 3.5 million in cash and 50 kg of gold (along with co-conspirator Mihir Bhansali) from Dubai, according to the investigation. He allegedly destroyed digital evidences (mobile phones and server) pertaining to Nirav’s case in Dubai. He allegedly intimidated the witnesses and sent them to Cairo where their passports were seized at his instance, said sources.

The witnesses were allegedly forced to sign false documents in Cairo at Nehal’s instance and in one case, he offered a witness Rs 2 million in lieu of false testimony before the judicial authorities of Europe, the probe revealed.

India