nirav-modi-s-brother-nehal-modi-held-in-us-for-money-laundering

In an important diplomatic development, Nehal Modi, the brother of fugitive diamond merchant Nirav Modi, has been arrested in the United States in connection with the multi-crore Punjab National Bank (PNB) scam. The arrest was made following an extradition request submitted by Indian authorities.

The US Department of Justice confirmed that Nehal Modi, a Belgian national, was taken into custody on 4 July.

 

He now faces charges of money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), along with charges of criminal conspiracy and destruction of evidence, according to the prosecution complaint.

Nehal is accused of playing a key role in laundering the proceedings of crime on behalf of his brother Nirav Modi.

 

Indian investigative agencies, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), allege that Nehal helped conceal and move large sums of illicit funds by using a network of shell companies and complex international financial transactions.

The aim that the officials have stated, was to hide the origins of the stolen money and obstruct the probe into the PNB fraud.

Nirav Modi, along with his uncle Mehul Choksi, Nehal Modi, and others, is accused of defrauding PNB of approximately ₹13,500 crore through the fraudulent use of Letters of Undertaking (LoUs).

 

Nirav’s extradition was approved by the High Court in the United Kingdom but repeated legal appeals have delayed his return to India. He remains in custody at a London prison and was declared a fugitive economic offender in 2019.

Earlier this year, the Belgian government confirmed the arrest of 65-year-old Mehul Choksi in Antwerp, also based on an Indian extradition request. Choksi fled India in 2018 and has been residing in Antigua and Barbuda, where he obtained citizenship.

The next hearing in Nehal Modi’s extradition proceedings is scheduled for 17 July in the United States. He is expected to seek bail at that hearing, although the US prosecution has stated its intention to oppose any such application.