Daijiworld Media Network - New Delhi

New Delhi, Jul 5: In a major development in the Punjab National Bank (PNB) fraud case, the U.S. Department of Justice has informed Indian authorities that Nehal Modi, brother of fugitive diamond trader Nirav Modi, has been arrested in the United States.

The arrest, carried out by U.S. authorities on Friday, follows a formal extradition request submitted jointly by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).

According to the ED, Nehal Modi is being pursued for two serious offences: one count of money laundering and one count of criminal conspiracy, as detailed in the complaint filed by U.S. prosecutors.

Nehal Modi is a key accused in India’s multi-billion-dollar PNB fraud — one of the country’s largest-ever banking scams. Investigations by the ED and CBI have revealed his active role in laundering the proceeds of crime generated by his brother Nirav Modi. Authorities allege that Nehal helped conceal and move large amounts of illicit funds across international borders using a complex network of shell companies and foreign transactions.

The next hearing in Nehal Modi’s extradition case is scheduled for July 17, when a status conference will take place in a U.S. court. During the session, Modi may seek bail, though U.S. prosecutors have already indicated they will oppose any such application.

Meanwhile, Nirav Modi remains in the United Kingdom, where he is also contesting extradition to India. The Indian government has been actively coordinating with foreign jurisdictions to bring all individuals involved in the high-profile fraud to justice.