Nehal Modi, brother of fugitive businessman Nirav Modi arrested in USA

New Delhi (India) July 6: In a significant diplomatic win for India after its request for extradition, Nehal Modi, the brother of fugitive diamantaire Nirav Modi, was detained in the United States in relation to the multi-crore Punjab National Bank (PNB) scam.

Nehal Modi, a Belgian national, was arrested on July 4. According to the US prosecution's complaint, Nehal is charged with both criminal conspiracy and evidence destruction and money laundering under Section 3 of the PMLA.

Nehal Deepak Modi was born and raised in Belgium. He is wanted in India for laundering criminal proceeds on behalf of his brother Nirav Modi, who is being held in a London jail and is being extradited from the UK at the request of India.

He is accused of helping to hide the proceeds of the crime by assisting in the transfer and concealment of substantial sums of illegal funds through complex international transactions and a network of shell corporations. He is also charged with damaging the evidence.

Nehal Modi personally oversaw the removal of all accounts and documents, influenced staff members and took part in the destruction of the money trail. After the fraud was investigated, he also dealt with the proceeds of crime by stealing 50 kg of gold from Firestar Diamond FZE in Dubai.

Nehal Modi was also accused in the complaint of dealing with the proceeds of the crime, removing diamonds worth USD 6 million and 150 boxes of pearls from Hong Kong, as well as Dirham 3.5 million and 50 kg of gold from Dubai with fellow conspirator Mihir Bhansali.

In Dubai, Nehal Modi destroyed the digital evidence related to the Nirav Modi case, including servers and cell phones. He is accused of intimidating the witnesses and sending them to Cairo, where he ordered the confiscation of their passports.

In one case, Nehal Modi offered a witness Rs 20 lakh in exchange for providing false testimony to the European judiciary, and witnesses were also coerced into signing some fictitious documents in Cairo.

The next hearing in the extradition case is set for July 17. During this hearing, Nehal is probably going to request bail. Prosecutors in the US said they would challenge his plea.

The CBI and Enforcement Directorate (ED) are looking for Nirav Modi, his uncle Mehul Choksi, Nehal and others who used fictitious Letters of Undertaking (LoUs) to defraud PNB of approximately Rs 13,500 crore in loans.

Nirav Modi has filed multiple appeals, which is delaying the process of bringing him to India even though the UK High Court has already approved his extradition. In 2019, Nirav was declared a fugitive economic offender and is now imprisoned in London.

The Belgian government said earlier this year that Choksi was taken into custody in Antwerp after India requested his extradition. Choksi left India in 2018 and has since become a citizen of Antigua and Barbuda.

Aadrika Tayal