NEW DELHI: Nehal Deepak Modi, the brother of fugitive diamantaire Nirav Modi, allegedly played a crucial role in laundering proceeds of crime in the high-profile Rs 13,000 crore Punjab National Bank (PNB) fraud case as well as actively involved in the “disappearance and concealment of assets” and “destruction of evidence”, officials said on Saturday.
The revelation comes after Nehal Modi was arrested in the United States on the basis of an extradition request made by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
The United States Department of Justice informed Indian authorities that Nehal Modi was arrested by United States authorities on July 4, 2025.
Officials, aware of the facts of the case, told that Nehal Modi has “knowingly and intentionally participated in assisting the activity of concealment of proceeds of crime, destroying the evidence” in the multi-billion-dollar PNB fraud case— one of the largest banking scams in the country’s history – with his brother Nirav Modi.
“Nehal Modi was personally overseeing that all the accounts and records were eliminated and was influencing the employees and participated in destroying the evidence in respect of the money trail,” officials said.
According to officials, Nehal Modi also “dealt with proceeds of crime by taking 50 kg gold from Firestar Diamond FZE, Dubai after the initiation of investigation in this fraud.”
Nirav Modi’s brother is also accused of participating in assisting the activity of money laundering as defined under Section 3 of PMLA, 2002, and is liable for punishment under Section 4 of PMLA, 2002, said the officials.
After the case broke out, investigators said Nehal Modi “dealt with the Proceeds of crime in respect of the Nirav Modi case and taken away diamonds having value USD 6 million and 150 boxes of pearls from Hong Kong and cash of AED 3.5 million and 50 kg Gold from Dubai.”
He allegedly carried out these actions in collusion with Mihir Bhansali, another key co-conspirator in the case.
In a major attempt to sabotage the investigation, Nehal Modi is also accused of “destroying digital evidence, including mobile phones and servers, linked to the Nirav Modi case while in Dubai.”
Furthermore, officials said, “Nehal Modi allegedly intimidated witnesses and orchestrated their transfer to Cairo, where their passports were confiscated under his instructions.”
Officials reveal that “in Cairo, the witnesses were coerced into signing false documents.”
In a particularly alarming incident, Nehal Modi is said to have “offered INR 2 million to a witness in exchange for delivering a false testimony before European judicial authorities.”
The revelations have added a new dimension to the ongoing probe, further tightening the legal net around the Nirav Modi money laundering and fraud case, which has global ramifications.
The arrest of Nehal Modi has been made pursuant to an extradition request jointly submitted by the ED and the CBI.
As per the complaint filed by the U.S. prosecution, extradition proceedings are being pursued on two counts: one count of money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and one count of criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code.
Nehal Modi is wanted in India in connection with the Rs 13,000 crore PNB fraud case.
Investigations by the Enforcement Directorate and Central Bureau of Investigation have revealed that Nehal Modi played a key role in laundering proceeds of crime on behalf of Nirav Modi, who is also facing extradition from the UK. “He is alleged to have assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions, in violation of Indian laws.”
The next hearing date in the extradition proceedings is scheduled for July 17, 2025, when a status conference will be held.
Officials further said that Nehal Modi may apply for bail during this hearing, which the U.S. prosecution has stated it will oppose. (ANI)
