Nehal Modi Arrested in U.S. on Indian Extradition Request in ₹13,000 Crore PNB Scam

In a significant development in India’s pursuit of justice in the Punjab National Bank (PNB) fraud case, Nehal Modi, the younger brother of fugitive diamantaire Nirav Modi, has been arrested in the United States. The arrest was made on July 4 following a formal extradition request jointly submitted by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).

Nehal Modi, 46, is accused of playing a key role in laundering illicit funds and facilitating the concealment of proceeds from the ₹13,000 crore banking fraud — one of the largest in Indian history. The U.S. Department of Justice confirmed the arrest and stated that extradition proceedings are underway based on two charges:

• Criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code (IPC)

According to Indian investigative agencies, Nehal Modi assisted Nirav Modi in transferring and disguising large sums of money through a complex web of shell companies and cross-border transactions. He has also been charged with destruction of evidence and allegedly directed dummy directors to withhold his identity from authorities.

The next hearing in the extradition case is scheduled for July 17, 2025, during which Nehal Modi is expected to seek bail — a move that U.S. prosecutors have indicated they will oppose.

Nirav Modi, currently lodged in a London prison, is also facing extradition proceedings in the United Kingdom. Both brothers, along with their uncle Mehul Choksi, are accused of orchestrating the massive fraud that rocked India’s banking sector in 2018.

The arrest of Nehal Modi marks a major step forward in India’s efforts to bring back key accused individuals in high-profile financial crimes.