Nirav Modi’s Brother, Nehal Modi, Arrested in US for Role in Rs 13,000-Crore PNB Fraud; India Seeks Extradition
NEW YORK CITY, United States—July 6, 2025: Nehal Modi, the younger brother of fugitive diamantaire Nirav Modi, was arrested in the United States on Friday, July 4, 2025, in connection with the monumental Rs 13,000-crore Punjab National Bank (PNB) fraud. His arrest follows a persistent extradition request from Indian authorities, marking a significant development in India’s global pursuit of those involved in one of the country’s largest financial scams.
Arrest and Charges
Nehal Modi, now a Belgian national and arrested by US authorities based on a joint extradition request from India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), was confirmed by the US Department of Justice. He has pleaded not guilty to two main charges: money laundering under India’s Prevention of Money Laundering Act, 2002, and criminal conspiracy and destruction of evidence under the Indian Penal Code. Nehal Modi will probably ask for bail at a status hearing in the US extradition case on July 17, 2025, which is strongly opposed by the US prosecutors.
HDB Financial Services IPO Opens June 25; Strong Grey Market Premium HDB Signals Robust Listing
Alleged Role in the PNB Scam
Prosecutors assert that Nehal Modi, 46, was heavily involved in the nationwide fraud along with his brother Nirav Modi and uncle Mehul Choksi. He supposedly aided with the routing and shielding of the presumed ill-gotten finances using a raucous arrangement of fictitious firms and transferring fund transactions crossing international borders. According to what the ED said, Nehal assisted Nirav Modi after the fraud became public, including attempts to destroy electronic proof and intimidate the directors of shell companies in Dubai that had been used to conceal unlawful trade. Specifically, he is alleged to have orchestrated the destruction of electronic data and servers by relocating employees from Dubai to Cairo, where their devices were purportedly destroyed.
Scale of the Fraud and Previous Actions
The PNB fraud case, estimated to be around Rs 13,000 crore (approximately $1.5 billion), involved the fraudulent issuance of Letters of Undertaking (LoUs) from PNB’s Brady House branch in Mumbai. These LoUs were used to secure buyers’s credit from foreign banks for entities linked to Nirav Modi and Mehul Choksi without proper collateral. Nirav Modi is currently lodged in a London prison, facing extradition proceedings to India, which have been delayed by his appeals. Earlier this year, Mehul Choksi was also detained in Belgium following an Indian extradition request.
India’s Continued Pursuit of Fugitives
The arrest of Nehal Modi is seen as a significant diplomatic achievement for India, confirming the country’s absolute dedication to prosecuting persons accused of financial crimes no matter where they are. Interpol had issued an American Red Notice against Nehal Modi at India’s request, which he challenged unsuccessfully. Indian investigative agencies have continuously stated these individuals had, in a conceived manner, defrauded the banking system and thereafter tried to destroy evidence and scuttle legal proceedings. These persistent efforts reinforce India’s determination to recover money lost by the public exchequer and hold all perpetrators to justice.
