In a major breakthrough in the multi-billion-dollar Punjab National Bank (PNB) fraud case, Nehal Modi — brother of fugitive diamond trader Nirav Modi — has been arrested by US authorities. The United States Department of Justice informed Indian officials that the arrest was made on July 4, 2025, following a formal extradition request submitted jointly by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).

According to the complaint filed by US prosecutors, Nehal Modi is facing extradition on two key charges: one count of money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and one count of criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code.

Nehal Modi is wanted in India for his alleged role in laundering illicit funds in connection with the massive PNB scam — one of the biggest banking frauds in the country’s history. Investigations by the ED and CBI have revealed that Nehal Modi helped Nirav Modi siphon off and disguise proceeds of crime using a complex network of shell firms and cross-border transactions.

Sources said that the next hearing in the extradition case is slated for July 17, 2025, when a status conference will be held in a US court. During this hearing, Nehal Modi is expected to apply for bail — a move the U.S. prosecution has already said it will oppose.

The arrest marks a significant development in India's efforts to bring back key accused individuals in high-profile financial fraud cases. Nirav Modi, who is currently fighting extradition from the UK, remains in custody.