Who Is Nihal Modi & Why Was He Arrested In The US, How ED & CBI Caught Him?

New Delhi: American authorities have arrested Nihal Modi, the younger brother of fugitive diamond businessman Nirav Modi. His arrest was made based on a request from India's Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).

Nihal is accused of being involved in the ₹13,000 crore Punjab National Bank (PNB) scam, one of India’s biggest financial frauds. The US authorities informed India about the arrest and said that he was taken into custody on Friday. The next hearing in his case is scheduled for July 17.

Why This Arrest is Important for India

India considers Nihal’s arrest a big success. It is part of the ongoing efforts to bring back key accused people in the PNB scam and ensure they face justice. Nihal has applied for bail, but US lawyers are expected to oppose his release in court.

Arrest Based on India’s Request

According to American officials, Nihal Modi was arrested following extradition requests made by both ED and CBI. These two Indian agencies are working together to bring him back to India for trial.

Charges Against Nihal Modi

There are two main charges against Nihal:

Money Laundering under India’s Prevention of Money Laundering Act (PMLA), 2002.

Criminal Conspiracy under Sections 120-B and 201 of the Indian Penal Code — for planning a financial fraud and helping others escape.

In simple words, Nihal is accused of helping move illegal money and helping his brother Nirav escape India.

Involvement in the PNB Scam

Nihal Modi (46 years old) is a key accused in the Rs 13,000 crore PNB bank scam. Along with his brother Nirav Modi and their relative Mehul Choksi, he is accused of cheating the bank. All three allegedly worked together to pull off the fraud.

Who is Nihal Modi?

Nihal is the younger brother of Nirav Modi, a fugitive diamond businessman. He has taken Belgian citizenship. While Nirav is currently in jail in the UK, facing extradition to India, Nihal was helping him by managing fake companies to hide and transfer the illegal money.

He is also accused of helping Nirav escape from India. ED’s charge sheet lists Nihal as a co-accused in the PNB scam.