New Delhi: 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 Saturday.
Nehal Modi, who is the subject of a Red Notice issued by the Interpol, was taken into custody 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), while the remaining amount was misappropriated by his uncle in a similar modus operandi, according to the CBI chargesheet.
Born and raised in Belgium’s Antwerp and fluent in English, Gujarati and Hindi, Nehal Deepak Modi is wanted in India for allegedly laundering proceeds of crime on behalf of his brother, Nirav Modi, who remains incarcerated in a London prison, facing extradition proceedings to India.
It is alleged that Nehal Modi played a pivotal role in concealing and transferring large sums of illicit money through a labyrinthine web of shell companies and offshore transactions, in violation of Indian financial laws.
He has been named as an accused in separate chargesheets filed by both the ED and the CBI.
In the ED chargesheet, Nehal Modi has been charged with destruction of evidence and “knowingly and intentionally” assisting Nirav Modi in his alleged illegal acts, the officials said.
The ED has claimed that after the PNB scandal came to light, Nehal Modi, along with Nirav Modi’s close confidante and executive Mihir R Bhansali, “transported 50 kg of gold and substantial cash from Dubai”, and instructed dummy directors not to reveal his identity to investigating authorities.
Nehal Modi is listed as the accused number 27 in a supplementary chargesheet submitted by the CBI, which has accused him of destroying evidence in Dubai to cover up the alleged criminal conspiracy.
On the request of Indian authorities, the Interpol issued a Red Notice against Nehal Modi, making it publicly accessible in order to solicit international cooperation in locating him.
A Red Notice, issued by the Interpol to its member nations, seeks the location and provisional detention of individuals pending extradition, surrender or similar legal action.
Nehal Modi had appealed against the notice before the Commission for Control of Interpol’s Files (CCF), but his plea was rejected after the CBI submitted an exhaustive rebuttal.
The CBI has accused Nehal Modi of intimidating directors of Dubai-based shell companies used by Nirav Modi to give a veneer of legitimacy to a fraudulent trade.
These individuals were allegedly coerced into relocating from Dubai to Cairo, during which their phones, laptops and computer servers were destroyed to erase evidence.
These individuals, employees of Nirav Modi’s companies, were allegedly compelled to sign documents falsely declaring them as actual owners of companies based in Dubai and Hong Kong.
These entities were presented as engaged in legitimate export-import transactions with three Nirav Modi-controlled firms — Diamonds R Us, Solar Exports and Stellar Diamonds.
These firms are accused of unlawfully benefitting from the buyer’s credit issued by overseas banks on the strength of the LoUs fraudulently obtained from the PNB’s Brady House branch in Mumbai, in collusion with complicit bank officials.
PTI
