Nirav Modi's Brother Nehal Deepak Modi Arrested

Fugitive businessman Nirav Modi's younger brother, Nehal Deepak Modi, who is also wanted and had fled along with his brother, has been detained in the United States. According to media reports, his arrest follows an extradition request from India.

Nehal is a Belgian citizen and he was arrested by US authorities on July 4. The arrest was made based on a Red Corner Notice from Interpol, requested by India's Central Bureau of Investigation (CBI) and Enforcement Directorate (ED).

The charges against Nehal Modi are linked to his alleged role in the Punjab National Bank (PNB) scam. This banking fraud, which surfaced in early 2018, involves his elder brother, Nirav Modi, as the main accused. Indian officials claim Nehal helped Nirav eliminate crucial evidence and intimidate witnesses during the investigation.

Extradition Proceedings and Legal Challenges

Nehal Modi's arrest is part of a lengthy legal and diplomatic process. He attempted to challenge the Red Corner Notice but was unsuccessful in having it revoked. The next hearing regarding his extradition is scheduled for July 17. During this period, Nehal can apply for bail, although U.S. prosecutors have already stated their intention to oppose it.

In addition to these allegations, Nehal is accused of laundering black money worth thousands of crores with Nirav's assistance. Investigations indicate that he distributed these funds through shell companies and international transactions.

Impact on Indian Banking System
The PNB scam has reportedly caused losses exceeding Rs 13,500 crore (around USD 2 billion) to India's banking sector. Of this amount, Nirav Modi allegedly siphoned off Rs 6,498.20 crore. Meanwhile, his uncle Mehul Choksi is accused of diverting Rs 7,080.86 crore.

Nirav Modi was arrested in the UK in March 2019 and remains detained in a London prison while contesting extradition to India.