Nehal Deepak Modi, the younger brother of fugitive businessman Nirav Modi, has been arrested in the United States following an extradition request issued by Indian authorities. A Belgian national, Nehal Modi was detained on July 4 in the US by local authorities acting on a Red Corner Notice issued by Interpol at the behest of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). His arrest comes after a lengthy legal and diplomatic process, during which he contested the Red Corner Notice but ultimately failed to have it revoked. The allegations against Nehal Modi stem from his purported involvement in the multi-billion dollar Punjab National Bank (PNB) scam, a banking fraud initially uncovered in early 2018, with his elder brother, Nirav Modi, being the primary accused. Indian authorities claim that Nehal Modi participated in assisting Nirav in destroying crucial evidence, intimidating witnesses, and impeding the investigation following the scandal.
Nehal Modi is also charged with laundering illicit funds worth thousands of crores acquired from the scam with his brother's assistance. Investigations have revealed that Nehal dispersed this money through shell companies and overseas transactions. The extradition case's next hearing is scheduled for July 17; during this time, a bail application may be submitted on Nehal Modi's behalf, although US prosecutors have indicated they will oppose bail. The PNB scam is believed to have inflicted losses exceeding Rs 13,500 crore (approximately USD 2 billion) on the Indian banking system. Of this amount, Nirav Modi is accused of siphoning off Rs 6,498.20 crore, while his uncle Mehul Choksi is alleged to have diverted Rs 7,080.86 crore.Both Nirav Modi and Mehul Choksi fled India in January 2018, shortly before PNB alerted law enforcement to the irregularities. Nirav Modi was apprehended in the UK in March 2019 and remains in custody in a London penitentiary, contesting extradition to India. Mehul Choksi, now residing in Antigua, is facing separate legal proceedings, including a challenge to his citizenship.
