Finally Catching Up

You Probably Know about Nirav Modi…But have you heard about Nehal Modi?

Shakti Sharma
5 Min Read

Nehal Modi, the younger brother of Nirav Modi—the billionaire diamond businessman at the center of India’s largest bank fraud—has been arrested in the United States after a coordinated extradition request by Indian authorities. His arrest on July 4 is a major breakthrough in India’s years-long effort to bring back fugitives involved in the ₹13,000 crore Punjab National Bank (PNB) scam.

American authorities confirmed that Nehal was taken into custody in New York and is awaiting an initial court hearing, which is scheduled for July 17. Prosecutors say they will oppose any bail request as India pushes for his extradition under the US-India treaty.

Who is Nehal Modi?

Nehal Modi, a Belgian national, was born and raised in Antwerp in a family with deep roots in the diamond business. Fluent in English, Gujarati, and Hindi, Nehal worked closely with his brother Nirav, who was once the face of luxury jewellery brands in India and abroad.

While Nirav Modi became infamous after fleeing India in 2018, Nehal remained largely in the background. However, investigations by India’s Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) later revealed that Nehal allegedly played a critical role in managing international fronts, moving assets, and hiding evidence to protect his brother and their business empire.

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What is the PNB Fraud Case?

The PNB scam came to light in 2018 when India’s second-largest public sector bank discovered that over ₹13,000 crore (around $1.4 billion) had been siphoned off through fake Letters of Undertaking (LoUs). These LoUs were issued to Nirav Modi and his associates without proper documentation or collateral, helping them secure massive loans from overseas banks.

Nirav Modi, along with his uncle Mehul Choksi, used these funds to build a vast jewellery empire stretching from Mumbai to New York. As scrutiny intensified, both men fled India. While Nirav was arrested in the UK in 2019 and is still fighting extradition, Choksi was located in Antigua and later arrested in Belgium. Nehal Modi had until now avoided legal trouble—until this week.

What Are the Charges Against Nehal?

According to the ED and CBI, Nehal Modi:

  • Helped set up shell companies abroad to move and launder funds;

  • Supervised the destruction of digital and physical evidence (like mobile phones and servers);

  • Transferred gold and diamonds worth millions from Dubai to safe locations;

  • Intimidated and manipulated witnesses, including relocating some to Cairo to give false testimony.

He is formally charged under India’s Prevention of Money Laundering Act (PMLA) and sections of the Indian Penal Code (IPC) related to criminal conspiracy and destruction of evidence.

Indian agencies have described him as a “key conspirator” who ensured that money moved across borders undetected while also protecting his brother from extradition attempts.

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What Happens Next?

Nehal Modi is currently in U.S. custody, awaiting a status hearing on July 17 in a federal court. During that hearing, the judge will consider whether to grant bail. U.S. prosecutors have indicated they will argue against bail, citing the risk of flight and the seriousness of the charges.

If the court rules in favor of India’s request, extradition proceedings could begin soon. India has already provided a detailed dossier of charges and evidence.

Nehal’s arrest could strengthen India’s case against others involved in the PNB fraud, including Nirav Modi, whose legal battle in the UK has stretched on for over six years.

As India moves closer to justice in its biggest financial scandal, Nehal Modi’s arrest marks a key moment in a long and complex international legal chase—one involving billions of dollars, global diamond networks, and powerful political and financial interests.

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