New Delhi: The United States authorities have arrested Nehal Modi, younger brother of fugitive diamond merchant Nirav Modi, based on extradition requests from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), officials said on Saturday.

Nehal, aged 46, was taken into custody on Friday. US authorities have formally informed India of the development, the officials added. He is scheduled to appear in court on July 17, when he may seek bail. However, US prosecutors are expected to oppose his release.

The arrest comes in response to a joint extradition plea from India, with the legal proceedings in the US based on two primary charges — 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 (IPC), relating to conspiracy and destruction of evidence, respectively.

Nehal Modi is a key accused in the ₹13,000 crore Punjab National Bank (PNB) scam — one of India’s largest banking frauds — allegedly masterminded by Nirav Modi and their uncle Mehul Choksi.

Born in Antwerp, Belgium, Nehal is fluent in English, Gujarati, and Hindi. He is wanted in India for allegedly laundering proceeds of crime and facilitating the concealment and movement of illicit funds via a global network of shell companies and transactions.

The ED has named him in its chargesheet for his alleged role in destroying evidence and for "knowingly and intentionally" assisting his brother Nirav Modi. Investigators claim that after the PNB scam was exposed, Nehal, along with Mihir R Bhansali (a close aide of Nirav), took 50 kilograms of gold and substantial amounts of cash from Dubai, and instructed dummy directors to withhold his identity from Indian authorities.

His brother Nirav Modi remains in a London prison facing extradition to India in the same case.