Nehal Modi, Brother of Fugitive Nirav Modi, Arrested in US in PNB Fraud Case
NEW YORK, United States—July 5, 2025: Nehal Modi, brother of the fugitive diamond merchant Nirav Modi, has been arrested in the United States in respect to the multi-billion-dollar Punjab National Bank fraud case. The arrest on July 4, 2025, followed a formal extradition request jointly submitted by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) in India. Nehal Modi is accused in India of money laundering and criminal conspiracy for alleged help in the greatest bank scam in India—the illicit actions of his brother.
Arrest and Extradition Proceedings Initiated
The United States Department of Justice confirmed the arrest to Indian authorities. Nehal Modi is a Belgian national, and he was arrested based on an Interpol Red Corner Notice issued at the request of India. This is a significant breakthrough in India’s improved efforts to bring to justice accused persons in prominent financial fraud cases.
Extradition proceedings have now started in a U.S. court. The complaint by U.S. prosecutors states that there’s an extradition being pursued for two primary counts: money laundering as described under Section 3 of the Prevention of Money Laundering Act (PMLA) 2002 and criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code (IPC).
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Charges and Role in the PNBB Scam
The ED and CBI say that Nehal Modi played an instrumental role in laundering criminal proceeds for his elder brother, Nirav Modi. He is accused of assisting in concealing and transferring, via a very complicated web of shell companies and overseas transactions, huge amounts of illicit funds and violating Indian laws.
The charge sheet of the ED mentions Nehal Modi as accused of destroying evidence and “knowingly and intentionally” aiding Nirav Modi in actions involving illicit conduct. Specifically, it is alleged that after the PNB fraud came to the limelight, Nehal, in collusion with Nirav’s close associate Mihir R. Bhansali, transported 50 kg of gold and huge quantities of cash from Dubai. They also, as asserted, ordered dummy directors not to cooperate with the authorities.
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Connection with the Larger PNB Fraud
This ₹13,000 crore (almost $2 billion) PNB fraud case was one of the largest banking scams in India and came to light in early 2018. It arose as fraudulent Letters of Undertaking (LoUs) issued by Punjab National Bank officials to companies associated with Nirav Modi and his uncle, Mehul Choksi. Nirav Modi and Mehul Choksi are also undergoing the process of extradition, the first from the UK and the latter from Belgium.
Nirav Modi is the main accused, who continues to fight against his extradition to India from a prison in London. Nehal’s arrest is another step in extending international action against those accused of being part of an enormous financial criminal enterprise.
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Next steps in litigation
A U.S. court has scheduled a status conference for Nehal Modi’s extradition case for July 17, 2025. He will most likely file for bail at this hearing, an application the U.S. prosecution has already signaled it will oppose. This upcoming hearing will be very critical in determining the immediate trajectory of his legal battle.
Nehal Modi has been facing some of his own legal hassles with the U.S., and in August 2022, he received a prison sentence of 3 to 9 years in state prison because of his connection to a scheme involving millions of dollars in diamonds that defrauded LLD Diamonds USA, a diamond wholesaler in Manhattan.
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Broader Implications
Nehal Modi’s arrest underlines that the Indian authorities have not relaxed their persistent, intense global endeavors pursued towards the capture and arrest of individuals wanted for specific, enormous economic offenses. It speaks to the much-needed intricate international cooperation in the complex fight against financial crimes that cross jurisdictions. With this latest episode, India should be strengthened in ongoing extradition cases against other suspected fugitives.
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