Nehal Deepak Modi, the younger brother of fugitive businessman Nirav Modi, has been arrested in the United States in connection with the Rs 13,000 crore Punjab National Bank (PNB) scam, one of India’s largest financial fraud cases. The arrest was made following an extradition request by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
According to reports, Nehal Modi, 46, was taken into custody on Friday. The US authorities informed Indian officials about his arrest, which marks a major step in India’s efforts to bring key accused in the PNB scam to justice.
Nehal is facing two serious charges:
Money laundering under the Prevention of Money Laundering Act (PMLA), 2002
Criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code
Authorities allege that Nehal played a critical role in laundering illicit funds by creating a network of shell companies and routing transactions abroad. He is also accused of destroying evidence and knowingly assisting Nirav Modi in concealing financial misconduct.
Nirav Modi, who is currently fighting extradition in the UK, is the alleged mastermind of the scam, which involved fraudulent issuance of Letters of Undertaking (LoUs) from PNB branches in India to secure overseas credit.
Nehal’s arrest and the subsequent extradition proceedings may bring Indian authorities closer to prosecuting those responsible for the massive banking fraud.
