Winning Bizness Desk

Mumbai. Nehal Modi, the younger brother of fugitive diamond merchant Nirav Modi, has been arrested in the United States on charges of financial fraud. The arrest took place in New York on July 4, reportedly on the basis of a joint extradition request filed by India’s Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). According to the US Department of Justice, Nehal Modi is accused of defrauding LLD Diamonds USA of more than $2.6 million. This development marks a major breakthrough in India’s attempt to bring those responsible for the ₹13,000 crore Punjab National Bank (PNB) scam to justice.

Red Corner Notice Triggers Arrest

Nehal Modi, a Belgian national, was apprehended after US authorities acted on an Interpol Red Corner Notice issued at the request of Indian agencies. He had earlier tried to get the notice revoked but failed. Officials claim Nehal not only played a role in laundering funds from the PNB scam but also helped his brother Nirav destroy evidence, threaten witnesses, and obstruct the investigation. The scam, which surfaced in early 2018, is one of India’s largest financial frauds and caused a major blow to the country’s banking system.

Accused of Laundering Crores

Indian investigators believe Nehal was instrumental in routing illicit proceeds through a maze of shell companies and overseas transactions, effectively covering the financial trail. His arrest comes just as the next hearing in his extradition case is scheduled for July 17 in the US. Nehal’s legal team is expected to move a bail plea soon, but the US prosecution has made it clear it will strongly oppose any release while extradition proceedings are underway.

Brother Nirav Still in UK Custody

Nirav Modi, the main accused in the PNB scam, continues to fight extradition from the United Kingdom. He was arrested in London in March 2019 and remains in prison there. Both Nirav and his uncle Mehul Choksi fled India in January 2018, weeks before the scam came to light. Choksi is currently in Antigua, contesting both his extradition and citizenship. While Nirav is accused of defrauding the bank of ₹6,498.20 crore, Choksi allegedly diverted ₹7,080.86 crore.

India Seeks Swift Legal Closure

The Indian government sees Nehal Modi's arrest as a key step toward achieving legal closure in the multi-crore scam. With diplomatic efforts intensifying and global law enforcement mechanisms being used, officials hope the arrest will pave the way for similar progress in pending extradition cases involving Nirav Modi and Mehul Choksi. The case has become symbolic of India’s renewed push against economic fugitives evading justice abroad.

Story in a Nutshell:

• Nehal Modi arrested in New York on July 4 on fraud charges.
• Arrest followed joint extradition request by India’s ED and CBI.
• Interpol Red Corner Notice led to US authorities taking action.
• Nehal accused of laundering PNB scam funds through shell firms.
• Next extradition hearing is scheduled for July 17 in US court.
• Nirav Modi still in UK jail, fighting extradition since 2019.
• Scam cost Indian banks over ₹13,500 crore; Choksi remains in Antigua.