Nehal Modi, brother of fugitive economic offender Nirav Modi and an accused in the multi-billion-dollar Punjab National Bank (PNB) scam, has been arrested in the United States.

His apprehension on July 4 came following a joint extradition request from India's Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). The United States Department of Justice confirmed the arrest, stating it was made pursuant to India's extradition request.

Who is Nehal Modi?
Nehal Modi is considered a key figure in the PNB fraud case, one of India's largest banking scams.

Investigations by the ED and CBI allege that he played a crucial role in laundering criminal proceeds on behalf of his brother, Nirav Modi, who himself is currently facing extradition proceedings from the UK.

The fraud is alleged to have been orchestrated by the two brothers and their uncle, Mehul Choksi.

The ED's charge sheet names Nehal Deepak Modi, who was born and raised in Antwerp, Belgium, and is fluent in English, Gujarati, and Hindi.

What is the case against Nehal?
According to the complaint filed by the US prosecution, Nehal Modi faces extradition on charges of money laundering under Section 3 of India's Prevention of Money Laundering Act (PMLA) 2002, and criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code (IPC).

Nehal is specifically charged with destruction of evidence and "knowingly and intentionally" assisting Nirav Modi in his alleged illegal acts.

The ED further alleges that after the PNB fraud came to light, Nehal, along with Nirav Modi's close confidante Mihir R Bhansali, "took 50 kg gold and substantial cash from Dubai, and directed dummy directors not to reveal his name before the authorities," as quoted by news agency PTI.

He is also accused of aiding in concealing and transferring significant illicit funds through a network of shell companies and overseas transactions, in violation of Indian laws.

What happens next after arrest?
A status conference for the extradition proceedings is scheduled for July 17, 2025. Nehal Modi may apply for bail during this session, a request the US prosecution has stated it intends to oppose.