New Delhi: Authorities in the United States Friday arrested Nehal Modi, brother and alleged co-conspirator of fugitive diamond businessman Nirav Modi, on the request for extradition submitted by India’s agencies, the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), which have been probing the 2018 PNB loan fraud case.
The Indian agencies have been informed by their American counterparts about the arrest, as well as given assurances from the US Justice Department that his bail plea will be opposed during the next date of hearing in the extradition proceedings. The next hearing is scheduled for 7 July, sources privy to the developments told ThePrint.
Nehal, a Belgian national, has been named as an accused in charge sheets filed by both CBI and ED in the bank loan fraud, amounting to an excess of Rs 13,000 crore, which was borrowed fraudulently from the Punjab National Bank. His elder brother Nirav Modi and uncle Mehul Choksi have been named as the prime accused in the case.
Notably, Nirav Modi has been in custody in the United Kingdom since March 2019, on account of pending extradition proceedings, while Mehul Choksi was detained by authorities in Belgium, where his extradition is also pending.
Indian agencies managed to obtain a Red Corner Notice against Nehal in July 2019, based on which Interpol requested all its 192 member states to arrest or detain him upon spotting him in their countries, after which extradition or deportation proceedings could begin.
In its charge sheet, the CBI has alleged that Nehal Modi attended a meeting with senior managers of the Punjab National Bank on 26 January, 2018, days before the CBI booked Nirav Modi, his family, Choksi, and retired deputy manager of the bank Gokulnath Shetty.
Additionally, the agency found in the probe, through statements from individuals associated with Modis’ firms, that after the registration of the CBI’s case, Nehal Modi took overall control of the various companies’ affairs. In the probe, agencies also allegedly found that Nehal Modi directed and facilitated the movement of funds and dummy directors of the firms of Nirav Modi from Dubai to Cairo, in an attempt to avoid arrest or criminal proceedings. He also allegedly instructed those directors to make false statements in the event of arrest by agencies, including claiming that they did not work for Nirav Modi.
The ED also highlighted that Nehal allegedly took around 50 kg of gold and AED 3.5 million from a Dubai-based firm, Firestar Diamond FZE, as well as 150 boxes of pearls worth USD 6 million from Hong Kong, following investigations in India.
Additionally, the agency alleged he was personally overseeing attempts to erase accounts and records that established the money trail of firms established by his brother, Nirav Modi, and his associates.
“He intimidated witnesses and sent them to Cairo, where their passports were taken over, and they were forced to sign some false papers. He offered a witness Rs 20 lakh for tendering false testimony before the judicial authorities of Europe,” the agency has alleged.
(Edited by Viny Mishra)
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