The Enforcement Directorate (ED) has approached a special court seeking to declare diamond trader Nirav Modi’s brothers — Neeshal Modi and Nehal Modi — as Fugitive Economic Offenders (FEOs) in connection with the Punjab National Bank (PNB) fraud case, intensifying efforts to recover proceeds of crime linked to one of India’s biggest banking scandals.
The applications were recently filed before the PMLA special court, which is scheduled to hear the matter on February 18. Officials said that once declared FEOs under the Fugitive Economic Offenders Act, the brothers’ movable and immovable assets in India can be attached or confiscated, significantly strengthening the agency’s recovery drive.
According to the ED, Nehal Modi allegedly assisted Nirav Modi in routing and concealing large sums of money through a network of shell companies and overseas transactions. Neeshal Modi, meanwhile, is accused of facilitating the appointment of dummy partners and acting as a signatory or beneficiary in multiple Dubai-based front companies between 2011 and 2013.
Charge sheets filed by the agency claim that both brothers played a key role in moving funds siphoned from PNB through international financial channels, helping obscure the money trail.
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Extradition proceedings underway
Investigators said Nehal Modi was arrested in the United States in 2025 and is currently contesting extradition proceedings initiated by the ED and the Central Bureau of Investigation (CBI). Neeshal Modi is believed to be absconding.
In a parallel move, the ED has also sought to declare senior executives of Nirav Modi’s firm — Aditya Nanavati and Sandeep Mistry — as fugitive economic offenders, citing their continued absence from the investigation process.
The agency maintains that declaring all key accused as FEOs will accelerate domestic asset seizures and facilitate coordinated action with foreign jurisdictions where significant proceeds of crime are suspected to be parked.
Over ₹23,780 crore allegedly siphoned off
Nirav Modi and his uncle Mehul Choksi are accused of orchestrating a massive fraud at PNB by colluding with bank officials to issue fraudulent Letters of Undertaking (LoUs) and foreign Letters of Credit (FLCs), enabling the illegal withdrawal of more than ₹23,780 crore.
In 2019, a special court had already declared Nirav Modi a Fugitive Economic Offender. The ED’s similar plea against Choksi remains pending. While Choksi is currently facing extradition proceedings, Nirav Modi continues to be lodged in a London prison.
Officials said the investigation has since expanded across multiple jurisdictions, with teams tracing the international money trail and identifying properties and bank accounts allegedly acquired using diverted funds.
Enforcement tightening around global assets
ED sources said efforts are underway to locate and attach overseas assets linked to the Modi network, adding that a formal FEO declaration against Nirav Modi’s brothers would provide greater legal leverage to act against properties held abroad.
Legal experts noted that once an accused is declared a fugitive economic offender, the law allows confiscation of assets and bars the individual from pursuing civil claims in Indian courts — a provision aimed at preventing economic offenders from enjoying the benefits of the legal system while evading prosecution.
The ED reiterated that its objective remains clear: track the full proceeds of crime, bring all accused back to India to face trial, and ensure maximum recovery of public money lost in the PNB scam.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
