In a significant development tied to the Rs 13,500-crore Punjab National Bank (PNB) fraud, Nehal Deepak Modi, younger brother of fugitive businessman Nirav Modi, has been arrested in the United States. Authorities confirmed his detention on July 4, following an extradition request made by Indian agencies.

Nehal Modi, a Belgian national, was taken into custody based on a Red Corner Notice issued through Interpol. The extradition request was initiated by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). His arrest marks another critical step in India’s prolonged efforts to bring all individuals involved in the PNB scam to justice.

US prosecutors are pursuing extradition 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 and evidence destruction under Sections 120-B and 201 of the Indian Penal Code (IPC).

According to Indian investigators, Nehal Modi played a key role in helping Nirav Modi launder illicit proceeds and conceal assets obtained through fraudulent Letters of Undertaking issued by Punjab National Bank. Authorities believe he facilitated the transfer of large sums of money through shell companies and complex international financial networks. He is also accused of helping his brother destroy digital evidence and instructing dummy company directors not to reveal his involvement to authorities.

The PNB fraud, uncovered in early 2018, remains one of India’s largest financial scams. Nirav Modi and his uncle, Mehul Choksi, allegedly defrauded the state-run bank of over Rs 13,500 crore. Of this, Nirav Modi is accused of misappropriating Rs 6,498 crore, while Choksi is linked to ₹7,080 crore.

While Nirav Modi continues to contest his extradition from the United Kingdom, Choksi was recently arrested in Belgium. Both fled India in 2018 before the scam came to light.

Nehal Modi’s next court appearance in the US is scheduled for July 17, where he is expected to apply for bail. US prosecutors have stated that they will oppose his release.

The case continues to draw national attention, as Indian authorities press forward in recovering defrauded public funds and holding all perpetrators accountable.