Nehal Modi, brother of fugitive diamantaire Nirav Modi, has been arrested in the United States in connection with the multi-crore Punjab National Bank (PNB) scam in a major diplomatic win for India following its extradition request.
According to the US Department of Justice, Nehal Modi, a Belgian national, was taken into custody on July 4.
As per the US prosecution complaint, Nehal faces two charges - money laundering under Section 3 of PMLA and criminal conspiracy and destruction of evidence.
Nirav Modi, his uncle Mehul Choksi, Nehal and others are wanted by the CBI and the Enforcement Directorate (ED) for cheating PNB of about Rs 13,500 crore in loans using fraudulent Letters of Undertaking (LoUs).
While Nirav Modi's extradition has already been approved by the UK High Court, the process to bring him to India is being delayed due to him filing numerous appeals. Nirav, who is in a London jail, was declared a fugitive economic offender in 2019.
Earlier this year, the Belgian government said Choksi, 65, was arrested in Antwerp following an extradition request by India. Choksi fled India in 2018 and has been living in Antigua and Barbuda as a citizen since then.
Investigations by the ED and CBI have revealed that Nehal played a key role in laundering proceeds of crime on behalf of Nirav Modi, who is also facing extradition from the UK.
He is alleged to have assisted in concealing and transferring large amounts of illicit funds through a web of shell companies and complex foreign transactions in a bid to conceal the proceeds of the crime.
The next date of hearing in the extradition proceedings is scheduled for July 17. Nehal is likely to apply for bail during this hearing. The US prosecution said that it would oppose his plea.
Source: India Today