US AUTHORITIES have arrested fugitive diamantaire Nirav Modi’s younger brother, Nehal Modi, following extradition requests from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), officials said on Saturday. Nehal Modi, who is the subject of a Red Notice issued by the Interpol, was taken into custody on Friday, US officials told Indian authorities. The next hearing in the matter is scheduled for July 17, during which Nehal Modi may seek bail -- a move expected to be contested by US prosecutors, the officials said. The arrest stems from a joint extradition plea submitted by the ED and the CBI.

 

The proceedings, led by US federal prosecutors, are based on two charges -- one count of money laundering under section 3 of the Prevention of Money Laundering Act (PMLA) and one count of criminal conspiracy under sections 120B (criminal conspiracy) and 201 (disappearance of evidence) of the Indian Penal Code. Nehal Modi (46) is an accused in the alleged Rs 13,000 crore Punjab National Bank (PNB) fraud -- one of the biggest banking scams -- reportedly orchestrated by him, Nirav Modi and their uncle, Mehul Choksi. Nirav Modi had, through his companies, siphoned off approximately Rs 6,498 crore from the PNB by issuing fraudulent letters of undertaking (LoUs).