New Delhi: In a big win for India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), Nehal Modi, the younger brother of fugitive diamantaire Nirav Modi, was arrested on July 5, 2025, in the United States.
The arrest comes after an extradition request was made by Indian authorities, seeking his involvement in the multi-billion-dollar Punjab National Bank (PNB) scam. Nehal Modi was arrested for being involved in a huge fraud case where he illegally took $2.6 million worth of diamonds from a top diamond company in Manhattan.
Nehal Modi, 45, was earlier charged in the US for deceiving a diamond company into providing him diamonds on the pretext of a deal with Costco, a deal that never materialized.
Instead, he allegedly pawned and sold the diamonds for his own financial gain. The extradition request was based on charges of money laundering, criminal conspiracy, and the destruction of evidence tied to the PNB fraud case.
Nehal Modi Involvement In PNB Scam
Nehal Modi, who has been named in India’s chargesheet related to the PNB scam, is accused of helping his brother, Nirav Modi, launder illicit funds by using shell companies across the globe.
Nehal was reportedly involved in the fraudulent transfer of money into overseas accounts and the destruction of key evidence, including secret communication servers.
He was a director at Firestar Diamonds USA and played a key role in laundering the proceeds of the scam through international shell companies. One of the main allegations against him is his involvement in the purchase of $25 million worth of property in the United States through the Ithaca Trust, a trust allegedly set up by Nirav Modi to conceal the proceeds from the fraud.
According to the Enforcement Directorate (ED), Nehal Modi also destroyed critical evidence that linked him and his brother to these illegal activities. This includes server communications from UAE-based shell companies that were used to facilitate fraudulent transactions through Letters of Undertaking (LoUs) issued by PNB.
Next Hearing on July 17
The next hearing in Nehal Modi’s extradition case will take place on July 17, 2025, where a status conference will be held. During this hearing, Nehal is expected to apply for bail, but the US prosecution has already stated they will oppose his bail request.
In addition, a Red Corner Notice had already been issued by Indian authorities against Nehal Modi in connection with the ongoing PNB scam case.