US authorities have arrested fugitive diamond merchant Nirav Modi’s brother Nehal Modi following an extradition request jointly made by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), officials said Saturday. Nehal is wanted in India in connection with the multi-billion-dollar Punjab National Bank (PNB) fraud case allegedly orchestrated by him, Nirav Modi and their uncle Mehul Choksi. Nirav is also facing extradition from the UK, while Choksi is in Antigua and faces a challenge to his citizenship. According to the ED, the US Department of Justice informed the Indian authorities that Nehal was arrested on July 4. The next hearing in his extradition proceedings is scheduled for July 17. “There is a possibility that Nehal may apply for bail during this hearing, which the US prosecution is likely to oppose,” said sources. An ED spokesperson said the extradition proceedings against Nehal 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 and 201 (disappearance of evidence) of the Indian Penal Code.” “Investigations by the ED and CBI have revealed that Nehal Modi played a key role in laundering proceeds of crime on behalf of Nirav… He is alleged to have assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions, in violation of Indian laws,” the ED spokesperson said. According to sources, the ED’s probe into the PNB case found Nehal “knowingly and intentionally participated in assisting the activity of concealment of proceeds of crime” and “was personally overseeing that all the accounts and records were eliminated”. “After the case broke out, he (Nehal) dealt with the proceeds of crime … and took away diamonds with value USD 6 million and 150 boxes of pearls from Hong Kong & cash of AED 3.5 million & 50 kg gold (along with Mihir Bhansali, another co-conspirator) from Dubai,” sources said. Nehal intimidated witnesses linked to the case and sent them to Cairo, where their passports were taken over and they were forced to sign “some false papers” at his instance, sources said. “In one case, a witness has been offered `2 million by himself (Nehal Modi) in lieu of tendering false testimony before the judicial authorities of Europe,” sources added.
