US authorities have arrested Nehal Modi, the brother of Nirav Modi, wanted in the Punjab National Bank (PNB) scam, based on India's appeal. The Indian government had earlier requested his extradition in connection with the massive banking fraud, estimated to be around ₹13,000 crore.
A new and significant development has emerged in the infamous ₹13,000 crore Punjab National Bank (PNB) scam. Nehal Modi, brother of the main accused, Nirav Modi, has been arrested in the United States. This arrest was made based on the Indian government's request for extradition. Nehal was presented in a US court on Friday, where proceedings against him began. His next hearing is scheduled for July 17th.
Arrest made on the appeal of Indian agencies
The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) of India had requested the US administration to extradite Nehal Modi. The agencies allege that Nehal, along with his brother Nirav Modi and uncle Mehul Choksi, orchestrated the scam and committed serious offenses such as money laundering.
Charges against Nehal Modi
Nehal Modi is charged under Section 3 of the Prevention of Money Laundering Act (PMLA) in India. Additionally, a case is ongoing against him under Section 120-B (criminal conspiracy) and Section 201 (destruction of evidence) of the Indian Penal Code. Indian agencies state that Nehal played an active role in conspiring the entire scam and strengthened Nirav Modi's international network.
Money vanished through shell companies
According to the ED's investigation report, Nehal used several shell companies through which money was sent abroad and properties were purchased there. All this money was used in the scam. Furthermore, investigation agencies claim that after the PNB scam came to light, Nehal removed approximately 50 kg of gold and a large amount of cash from Dubai.
Nirav Modi is already incarcerated in London
The main accused in this scam, Nirav Modi, is already incarcerated in a London jail, and the Indian government's efforts for his extradition are ongoing. A UK court approved Nirav Modi's extradition in 2021, but the matter is now pending before the European Court of Human Rights.
Action taken in collaboration with Mihir Bhansali
Nehal Modi is accused of conspiring with Mihir R. Bhansali, a close associate of Nirav Modi and CEO of Firestar International, to remove all evidence and conceal the money in other countries. He instructed dummy directors of Nirav's companies not to disclose their names to the investigating agencies under any circumstances.
Name included in the charge sheet
Nehal Modi's name is included in the charge sheet filed by the ED. According to the charge sheet, Nehal intentionally destroyed evidence and aided Nirav Modi in his illegal activities. ED officials say that Nehal's role has been not only financial but also strategic.
What happens next?
Following Nehal Modi's arrest, the case is now in the US court. The next hearing on July 17th will determine whether Nehal can be extradited to India. During this time, Nehal's lawyers may also file for bail. If the court denies bail and rules in favor of India, Nehal can be brought to India.
India could achieve a major success
The arrest of Nehal could provide a major breakthrough for the Indian government in this case. This could lead to the discovery of new clues in the PNB scam and expose the roles of those who have not yet answered questions related to the scam. The investigating agencies hope that they will get many important pieces of information after questioning Nehal.
