"He also dealt with the proceeds of the crime"
Nehal Modi, brother of fugitive jeweller Nirav Modi, has been arrested in the United States in connection with the Punjab National Bank (PNB) fraud case.
The arrest, confirmed by the US Department of Justice, is being seen as a major diplomatic win for India, which had formally sought his extradition.
The Belgian national was taken into custody on July 4.
According to the US prosecution complaint, he faces two charges: money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), and criminal conspiracy along with destruction of evidence.
Nehal Modi, Nirav Modi, Mehul Choksi and others are wanted by India’s Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) for allegedly defrauding PNB of around Rs. 13,500 crore.
The scam involved the use of fraudulent Letters of Undertaking (LoUs) to secure overseas credit.
Nirav Modi’s extradition has already been approved by the UK High Court, but multiple appeals by the diamond tycoon have stalled the process.
Nirav was declared a fugitive economic offender in 2019 and remains in a London jail.
Earlier in 2025, the Belgian government confirmed that Mehul Choksi had been arrested in Antwerp following a request from Indian authorities.
Choksi has held citizenship in Antigua and Barbuda since fleeing India in 2018.
Investigations by Indian agencies have highlighted Nehal Modi’s significant role in laundering the proceeds of the crime.
He is accused of helping Nirav Modi conceal and transfer illicit funds through shell companies and complex foreign transactions. Authorities said this was done to hide the money trail.
The complaint read: “Nehal Modi personally saw to it that all the accounts and records were eliminated and was influencing the employees and participated in destroying the money trail.
“He also dealt with the proceeds of the crime by taking 50 kg of gold from Firestar Diamond FZE, Dubai after the initiation of an investigation into this fraud.”
He also allegedly took diamonds worth $6 million and 150 boxes of pearls from Hong Kong.
The complaint added: “He dealt with the proceeds of the crime and took away diamonds valued at $6 million and 150 boxes of pearls from Hong Kong and cash of Dirham 3.5 Million and 50 Kg Gold (along with Mihir Bhansali – another coconspirator) from Dubai.”
Nehal Modi is also accused of tampering with digital evidence.
His involvement reportedly extended to witness intimidation.
“He allegedly intimidated the witnesses and sent them to Cairo, where their passports were taken away at his instance.”
The complaint also stated: “Witnesses were forced to sign some false papers in Cairo, and in one case, a witness was offered Rs 20 lakh by Nehal Modi in lieu of tendering false testimony before the judicial authorities of Europe.”
The next hearing in the extradition proceedings is scheduled for July 17, during which Nehal is expected to apply for bail. The US prosecution has said it will oppose the plea.
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