Nehal Deepak Modi, younger brother of fugitive businessman Nirav Modi, has been arrested in the United States following an extradition request issued by Indian authorities.
Nehal Modi, a Belgian national, was arrested on July 4 in the United States by local authorities acting on a Red Corner Notice issued by Interpol at the request of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). His arrest comes after a prolonged legal and diplomatic process, during which he challenged the Red Corner Notice but ultimately failed to have it revoked.
The charges against Nehal Modi stem from his alleged involvement in the multi-billion dollar Punjab National Bank (PNB) scam, a banking fraud first exposed in early 2018, in which his elder brother, Nirav Modi, is the principal accused. Indian authorities allege that Nehal Modi played a role in helping Nirav destroy key evidence, intimidate witnesses, and obstruct the investigation in the aftermath of the scandal.
Nehal Modi is also accused of laundering black money worth thousands of crores earned from the scam with the help of his brother. Investigation has revealed that Nehal distributed this money through shell companies and transactions done abroad.
The next hearing in the extradition case will be on July 17. During this time, a bail application can be filed on behalf of Nehal Modi, but the US prosecution has already made it clear that it will oppose the bail.
The PNB scam is estimated to have caused losses of over Rs 13,500 crore (approximately USD 2 billion) to the Indian banking system. Of this, Nirav Modi is accused of siphoning off Rs 6,498.20 crore, while his uncle Mehul Choksi is alleged to have diverted Rs 7,080.86 crore.
Both Nirav Modi and Mehul Choksi fled India in January 2018, just weeks before PNB reported the irregularities to law enforcement. Nirav Modi was arrested in the UK in March 2019 and remains in custody in a London prison, contesting extradition to India. Mehul Choksi, now in Antigua, faces separate proceedings including a challenge to his citizenship.
