Nirav Modi's brother Nehal arrested in US: Details here
What's the story
Nehal Deepak Modi, the younger brother of fugitive businessman Nirav Modi, was arrested in the United States. His arrest was made on July 4 based on an Interpol Red Corner Notice requested by Indian authorities, namely the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED). Nehal had unsuccessfully challenged this notice in a protracted legal battle.
Scam involvement
Nehal is accused of obstructing investigations in PNB scam case
Nehal is wanted in connection with the multi-billion dollar Punjab National Bank (PNB) scam, which was first unearthed in early 2018. His elder brother, Nirav, is the prime accused in this case. Indian authorities claim that Nehal aided Nirav by destroying evidence, intimidating witnesses, and obstructing investigations after the scandal broke.
Money laundering
Nehal also accused of laundering black money from PNB scam
Nehal is also accused of laundering black money from the PNB scam, allegedly with Nirav's help. Investigations show that he funneled this money through shell companies and foreign transactions. The next hearing in his extradition case is scheduled for July 17, where he can apply for bail but US prosecutors are likely to oppose it.
Scam impact
Scam inflicted over ₹13,500 crore loss to Indian banks
The PNB scam is estimated to have inflicted a loss of over ₹13,500 crore (around $2 billion) on the Indian banking system. Nirav is accused of siphoning off ₹6,498.20 crore while his uncle Mehul Choksi allegedly diverted ₹7,080.86 crore. Both Nirav and Mehul fled India in January 2018 just weeks before PNB reported the irregularities to law enforcement agencies.
Extradition proceedings
Nirav and Mehul are also facing legal battles overseas
Nirav was arrested in the United Kingdom in March 2019 and is currently contesting extradition to India from a London prison. Meanwhile, Mehul Choksi is now in Antigua and faces separate proceedings, including a challenge to his citizenship. The developments come as part of India's efforts to bring back both brothers to face trial for their alleged roles in one of the biggest banking scams in history.