Nirav Modi’s Brother Nehal Modi Arrested in the U.S.; But Is Bringing Him to India That Easy?
#News Bureau July5,2025
Nehal Modi, brother of Nirav Modi, has been arrested in the U.S. following India’s request for extradition.
But will bringing him back to India be that simple?
Explore the legal process, potential challenges, and the next steps in this high-profile case.
Nehal Modi, the younger brother of fugitive diamond merchant Nirav Modi—wanted in one of India’s biggest banking scams involving Punjab National Bank—has been arrested in the United States. The arrest was made based on an extradition request filed by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) on behalf of the Indian government. According to the U.S. Department of Justice, Nehal Modi was taken into custody on Friday. This development is seen as a significant step forward in the investigation of the PNB scam, which had sent shockwaves through India’s banking sector.
Nehal Deepak Modi, 46, is a Belgian national. He faces serious charges in India, including money laundering and criminal conspiracy. According to the complaint filed by U.S. prosecutors, the extradition request is based on two major charges: one under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and the other under Sections 120-B (criminal conspiracy) and 201 (destruction of evidence) of the Indian Penal Code.
According to officials, Nehal Modi’s next court hearing is scheduled for July 17, during which he may apply for bail. However, U.S. prosecutors have made it clear that they will oppose any bail request. Meanwhile, the Indian government and investigative agencies are in the process of submitting documentation and fulfilling legal formalities under the U.S. judicial system to secure his extradition.
The PNB Scam Case
The ₹13,500 crore Punjab National Bank (PNB) scam first came to light in early 2018.
In this case, Nirav Modi, along with his uncle Mehul Choksi and several associates, allegedly misused fraudulent Letters of Undertaking (LoUs) to siphon off massive sums of money from the bank. It is considered one of the biggest banking frauds in India’s history.
Nirav Modi, the prime accused, is currently lodged in a London prison, fighting extradition to India.
Mehul Choksi, on the other hand, was arrested in Belgium in April this year. His bail pleas have already been rejected.
What Are the Allegations Against Nehal Modi?
According to Indian investigative agencies, Nehal Modi played an active role in supporting his brother Nirav Modi’s illegal operations. He is accused of helping conceal and transfer proceeds of crime. Investigations by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) have revealed that Nehal allegedly moved large sums of illicit money through a complex web of shell companies set up in the UAE, Hong Kong, the British Virgin Islands, and the United States.
In addition, after the Punjab National Bank scam was exposed, Nehal allegedly conspired with Nirav’s close associate Mihir R. Bhansali to move 50 kilograms of gold and large amounts of cash from Dubai. He is also accused of instructing dummy directors not to disclose his name to investigative authorities.
Nehal has further been charged with destroying evidence and attempting to derail the investigation. The ED has named him in its chargesheet, stating that he knowingly and deliberately aided Nirav in his illegal activities.
A History of Fraud in the U.S. as Well
Nehal Modi’s track record of fraud isn’t limited to India. In 2020, a New York court found him guilty of defrauding LLD Diamonds USA of diamonds worth over $2.6 million (approximately ₹21 crore). In that case, Nehal had falsely claimed he was brokering a deal to sell diamonds to Costco stores. The deal never materialized, and instead, he sold or pawned the diamonds for personal gain. This conviction was upheld in 2023, although it remains unclear whether he served the full sentence.
India’s Extradition Strategy
Nehal’s arrest is part of India’s broader efforts to bring economic offenders to justice through international cooperation. Under the extradition treaty between India and the United States, Indian investigative agencies will now present strong evidence before U.S. courts to seek Nehal’s extradition.
The process could take several months, as it depends on the U.S. judicial system. Reports suggest that India’s Ministry of External Affairs is coordinating closely with the U.S. Department of Justice to complete all necessary legal formalities.
Reactions and the Road Ahead
Nehal Modi’s arrest is being seen in India as a major breakthrough in the investigation of the PNB scam.
This development marks a significant step toward holding the accused accountable and demonstrates India’s growing commitment to pursuing economic offenders on a global scale.
Investigating agencies believe that Nehal’s arrest could lead to the uncovering of more crucial information related to the scam.
However, Nehal’s Belgian citizenship may complicate the extradition process.
Experts suggest that U.S. courts will base their decision on the strength of the evidence provided by India and the terms of the bilateral treaty between the two countries.
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