US police arrests Nirav Modi's brother on ED, CBI extradition request

In a significant development in the ongoing Punjab National Bank (PNB) fraud case, Nehal Modi, the younger brother of fugitive diamantaire Nirav Modi, has been arrested by US authorities. Officials confirmed on Saturday that Nehal was taken into custody on Friday, acting on extradition requests jointly submitted by India's Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). This arrest marks a crucial step in India's efforts to bring to justice those involved in the alleged Rs 13,000 crore scam, one of the largest financial frauds in the country's history.

The US authorities have officially informed India about Nehal Modi's apprehension. His next hearing is scheduled for July 17, during which he may seek bail. However, US prosecutors are expected to strongly oppose any bail application, signaling their commitment to the extradition process. This move demonstrates international cooperation in tackling financial crimes and pursuing fugitives across borders.

The extradition proceedings initiated by US prosecutors are based on two key charges. These include one count of money laundering under Section 3 of India's Prevention of Money Laundering Act (PMLA), 2002, and one count of criminal conspiracy under Sections 120-B (criminal conspiracy) and 201 (disappearance of evidence) of the Indian Penal Code. These charges highlight the gravity of the alleged financial misconduct and the legal framework being utilized to prosecute it.

Nehal, aged 46, is a key accused in the massive PNB fraud, which allegedly involved a complex web of fraudulent letters of undertaking (LoUs) and foreign exchange transactions. It has been widely alleged that this intricate financial crime was orchestrated primarily by the two Modi brothers, Nirav and Nehal, in collusion with their uncle, Mehul Choksi, who is also a fugitive.

Born and brought up in Antwerp, Belgium, Nehal Deepak Modi is fluent in English, Gujarati, and Hindi, and is wanted in India for his alleged role in laundering proceeds of crime on behalf of his elder brother. Nirav Modi himself is currently incarcerated in a London prison, where he is also facing ongoing extradition proceedings initiated by India.

Officials have alleged that Nehal played a significant part in concealing and transferring substantial sums of illicit funds. This was reportedly achieved through a convoluted network of shell companies and overseas transactions, all in violation of Indian laws. The ED's charge sheet in this case specifically names Nehal, accusing him of destruction of evidence and "knowingly and intentionally" assisting Nirav Modi in his alleged illegal activities. The ED further claims that after the PNB fraud came to light, Nehal, along with Nirav's close aide Mihir R Bhansali, took 50 kg of gold and a significant amount of cash from Dubai, instructing dummy directors not to disclose his name to authorities.