Nehal Modi, Brother of Nirav Modi, Arrested in US Bank Fraud Case

Nehal Modi, Brother of Fugitive Nirav Modi, Arrested in the US in Multi-Million Dollar Bank Fraud Case

New York, July 5, 2025 — Nehal Modi, the younger brother of fugitive diamond tycoon Nirav Modi, has been arrested by US authorities in connection with a major bank fraud case involving alleged financial misrepresentation and laundering of millions of dollars through shell companies.

According to the United States Department of Justice, Nehal Modi was taken into custody late Friday in New York following a detailed investigation into a complex scheme involving fraudulent loan applications and misuse of bank funds across multiple states.

Charges and Allegations

Federal prosecutors have charged Nehal Modi with conspiracy to commit wire fraud, bank fraud, and money laundering. The indictment claims that Modi, acting through a network of front companies and forged documents, secured large business loans from US-based financial institutions under false pretenses.

“Mr. Modi orchestrated an elaborate web of deception, using fake invoices, inflated asset valuations, and shell corporations to defraud American banks,” said US Attorney Lisa Monroe in a press briefing. “His actions reflect a clear intent to deceive and siphon off funds for personal and undisclosed uses.”

Links to Nirav Modi’s Global Fraud

The case has drawn fresh attention due to Nehal Modi’s familial connection to Nirav Modi, the prime accused in India’s multi-billion dollar Punjab National Bank (PNB) scam. While Nirav remains in a UK prison fighting extradition to India, Nehal had previously come under scrutiny for his alleged role in diverting assets and helping conceal his brother’s global financial trail.

Investigative agencies, including the FBI and the US Treasury Department, have reportedly been tracking Nehal’s financial movements since 2022. Sources close to the investigation revealed that he may have attempted to restructure illicit funds originating from the PNB scam and reroute them through US firms under the guise of diamond trade and luxury goods.

Court Appearance and Possible Extradition

Nehal Modi appeared before a federal court in Manhattan earlier today and was remanded to custody without bail. His legal team has denied all allegations, stating that he is being wrongfully targeted due to his family ties.

Meanwhile, Indian authorities have expressed interest in seeking his extradition, citing his alleged involvement in related financial crimes back home. The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are expected to coordinate with US officials on further proceedings.

Global Implications

The arrest adds another chapter to the long-running saga of financial fraud involving the Modi family. Experts believe this development could reignite international cooperation between Indian and American law enforcement agencies on economic crimes.

“This arrest could be a turning point,” said Dr. Ramesh Tiwari, a global finance analyst. “It may lead to new disclosures about offshore money trails, concealed assets, and hidden networks that span across several countries.”

The case is ongoing, and a preliminary hearing has been scheduled for next week.