Fugitive diamantaire Nirav Modi's brother Nehal arrested in US on India's request
Nehal Deepak Modi, 46, played a key role in the ₹6,498 crore Punjab National Bank (PNB) swindle in which his elder brother, Nirav Modi, is currently lodged at a UK prison and is facing extradition.
Officials familiar with the development said that Nehal, a Belgian citizen, was arrested by the U.S authorities on Friday, a day after he was released from a prison in New York, where had been serving sentence since July 2022 in a $2.6 million diamond fraud with a U.S firm.
A U.S Supreme Court jury sentenced Nehal Modi to 3-9 years in a grand larceny in the first degree case. He was accused of fraudulently obtaining diamonds from Manhattan-based wholesale company, LLD Diamonds USA, LLC ('LLD'). He had made false representations regarding a purported deal with Costco Wholesale Corporation to obtain more than $2.6 million worth of diamonds from LLD, also known as Lev Leviev Diamonds, between March and August 2015, according to the July 29, 2022 indictment seen by HT.
'The United States Department of Justice informed us that Nehal Modi has been arrested on July 4, a day after he was released from the prison, based on our extradition request (both CBI and ED's). An extradition request was sent in 2022 and for the past one and a half months, we were providing various clarifications to the American authorities and they finally arrested him,' said an ED officer, who didn't want to be named.
'It's a significant development because all three key perpetrators of the PNB case - Nirav Modi, Mehul Choksi and Nehal Modi are now lodged in prisons in the UK, Belgium and the US, respectively, based on efforts and prosecutable evidence for extradition provided by Indian agencies,' the officer added.
While Nirav Modi was arrested in London in 2019, Mehul Choksi was taken into custody in Antwerp in April this year.
As per the complaint filed by the U.S prosecutors, extradition proceedings are being pursued on two counts: 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 (destruction of evidence) of the Indian Penal Code (IPC), said a second officer.
The next date of hearing on extradition is July 17, when Nehal may apply for bail which U.S prosecutors have assured Indian officials they will oppose, he said.
Wanted since 2018, when the PNB swindle came to the light, Nehal Modi was earlier said to be based in Belgium and then later moved to the US.
An Interpol red notice was issued against him in July 2019 based on ED's request.
'He played a key role in laundering proceeds of crime on behalf of Nirav Modi, who is also facing extradition from the UK. He assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions, in violation of Indian laws,' said the second officer.
In the PNB case, in which Nirav Modi swindled ₹6,498 crore, ED has already traced proceeds of crime worth ₹2,626 crore in India and abroad.
Officials said charge sheets have been filed against Nehal in May 2018 and February 2019.
It has been alleged by the agencies that Nehal Modi helped Nirav in destroying the evidence after the PNB scandal broke out in January 2018 as well as launder money on his behalf.
Nehal, according to the ED officer cited above, was looking after the affairs of companies - Twin Fields Investments Limited, Bailey Bank and Biddle for Nirav Modi. 'Both these companies had received around USD 50 million from dummy companies of Nirav Modi which in turn received this fund from the fraud committed on PNB. For Nirav Modi, he became the protector and investment advisor of 'The Ithaca Trust'. This trust got the tainted funds to the tune of USD 30 million after extensive layering and two immovable properties have been purchased in USA from these tainted funds,' said the ED officer.
After CBI and ED started scanning their offices abroad with the help of international agencies, Nehal dealt with the proceeds of crime and took away diamonds having value of US dollars 6 million and 150 boxes of pearls from Hong Kong and cash of 3.5 Million dirham and 50 Kg gold from Dubai, according to a statement issued by ED in 2019.
Nehal also arranged the escape of Nirav's trusted man – Mihir Bhansali from Dubai and booked tickets of several dummy directors for Cairo so that Indian agencies would not catch them.
He was also involved in destroying the digital evidence like mobile phones and the server pertaining to Nirav Modi's companies in Dubai.
Nehal is also accused of helping Mehul Choksi in laundering money. 'Nehal Modi was incharge of M/s Samuels Jewellers INC and Diamlink Inc. At his instance, these companies had received around USD 19 million of proceeds of crime in the guise of royalty, advances etc from Dubai based shell companies of Mehul Choksi,' ED said in 2019.
'Nehal Modi was personally overseeing that all the accounts, records were destroyed and was influencing the employees/witnesses in respect of money trail of the proceeds of crime in the case. He destroyed the digital evidence (Mobile Phones and Server) pertaining in Dubai. He intimidated the witnesses and sent them to Cairo and in Cairo, their passports were taken over at his instance. Witnesses have been forced to sign some false papers in Cairo at his instance and in one case, a witness has been offered ₹20,000,00 by himself (Nehal Modi) in lieu of tendering false testimony before the judicial authorities of Europe,' said a second ED officer.
One of the co-accused sent to Cairo was Subhash Parab, who was brought by Indian authorities in April 2022 through extradition.
'When the case came to light in January 2018, Nehal Modi told Parab and other senior directors in the company to leave India as they may be questioned by Indian investigation agencies. He left for Cairo after Nehal arranged his travel and since then, agencies have been pursuing his extradition,' said a CBI officer.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
16 minutes ago
- Business Standard
Rupee slips on Trump's additional 10% Brics tariff; opens lower at 85.57/$
The Indian Rupee fell on Monday as US President Donald Trump threatened to impose an additional 10 per cent on countries aligning with Brics policies. The domestic currency opened 18 paise lower at 85.57 against the dollar on Monday, according to Bloomberg. All Asian currencies traded in the red with Thai Baht leading the fall, as caution loomed over the US reciprocal tariff deadline. The currency has appreciated 0.17 per cent so far this month, after having fallen 0.18 per cent in the first six months of the calendar year. President Trump, on Monday, threatened to levy an additional 10 per cent tariff on any country aligning itself with 'the Anti-American policies of BRICS,' fueling more uncertainty in the markets. 'Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10 per cent Tariff,' Trump said in a Truth Social post. 'There will be no exceptions to this policy.' The group's leaders, over the weekend, agreed to continue talks on a cross-border payment system for trade and investments, according to a Bloomberg report. Trump had previously threatened to slap 100 per cent levies on Brics in case they drop the dollar in bilateral trade. Meanwhile, Treasury Secretary Scott Bessent told CNN that several major agreements are nearing completion, according to reports. As others remain out of reach, he added that some deals may include a three-week extension option. However, India and the US are likely to take a final decision on the 'mini trade deal' in the next 24-48 hours, as per media reports. The Indian Rupee has remained range-bound over the past few days, trading between 85.30 and 85.60, analysts said. Nationalised banks have been buying dollars on dips, while exporters and other inflows have been selling on upticks, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Exporters are awaiting a move towards 86 to hedge, while importers are eyeing 85, he said. "In the meantime, market participants can cover their daily and weekly requirements. Today's opening is around 85.50, with an expected range of 85.30–85.80."
The Hindu
21 minutes ago
- The Hindu
‘Infosys doesn't want employees to work extra hours to ensure work-life balance, better productivity'
At a time when N. R. Narayanamurthy is holding firm about Indian workers logging in at least 70-hour work weeks, the company he co-founded and has later retired from, Infosys, has been mailing its employees to ensure they maintain a good work-life balance. The country's second-largest tech firm wants its employees to work only 9.15 hours, five days a week, on average. And, if anyone is found working more hours than required, a system triggers a message to that employee reminding him or her of the importance of work-life balance. This platform tracks all employees working from home and from various offices of the company. 'We reach out to employees who are spending more time at work very proactively to ensure proper work-life balance and encourage them to focus on holistic well-being,' said a source at the company. Infosys is currently in a silent period and therefore did not comment officially. 'Our commitment to mental and physical wellness is supported by a wide range of health initiatives and resources. Through our award-winning HALE (Health Assessment and Lifestyle Enrichment) programme, we continue to foster a culture of health, safety, and overall wellness,' he further said. According to information available with The Hindu, since its inception, HALE has done pioneering work in the area of employee health (physical & mental), employee safety, encouraging leisure and creating and sustaining a healthy workforce, which can balance work life and is productive. HALE has four key pillars to make the programme more holistic: Health, Safety, Leisure and Emotional Wellbeing. 'A proactive approach to health and life enrichment aimed at increased awareness, overall wellbeing resulting in good health, reduced stress levels, safe work environment and improved productivity levels,' says the company. The source further said, the Infosys Employee Relations team anchored activities which involve constant employee engagement and understanding of people issues. Through their experience, the team found strong evidence of an early onset of physical, mental and psycho-somatic illness in a young workforce. A sedentary lifestyle coupled with high work pressure and stress was resulting in heart ailments, high blood pressure, cases of depression and mental disorders, cases of suicide, attempts at bodily harm, and many cases of marital discord. 'Yes, we have deadlines and a lot of stress at work. Still, we have facilities at the workplace to relax, rest and rejuvenate ourselves. These days, bosses don't want us to work extra hours and they want us to focus on work-life balance and be productive,'' said a techie employed by Infosys. Further, medical research corroborated these findings and showed that proactive early interventions that lead to early detection, coupled with treatment options and lifestyle changes, can contribute significantly towards enhancing the active working age of an individual as well as directly impact workplace productivity. A twin focus on the Infosys commitment to provide employees an emotional value proposition as well as on the company's adherence to its core values led to the formation of HALE, the source added.
News18
22 minutes ago
- News18
Stock Market Updates: GIFT Nifty Hints Muted Start; Trump Shifts Tariff Deadline To Aug 1
Last Updated: Indian stock markets are likely to open on a cautious note, with a flat-to-negative bias on Monday, July 7 Sensex Today: Indian stock markets are likely to open on a cautious note, with a flat-to-negative bias on Monday, July 7, as investors react to the latest updates on US tariff measures under President Donald Trump's administration. US Treasury Secretary Scott Bessent announced on Sunday that the new tariffs will be enforced starting August 1 for countries that fail to finalise trade agreements with the US — a list that currently includes India. Bessent stated that the extended timeline is meant to give US trading partners additional time to renegotiate tariff terms. The uncertainty around India's pending trade agreement with the US could weigh on investor sentiment. As of 6:40 AM, GIFT Nifty futures were trading 13 points lower at the 25,528 level, indicating a muted start for domestic indices. Apart from global cues, market focus will gradually shift toward the first quarter earnings season for FY26. Tata Consultancy Services (TCS) will kick off the results season with its Q1 numbers scheduled for July 10. Other key earnings include DMart on July 11, HCL Technologies on July 14, and Tech Mahindra on July 16. With no major domestic triggers expected today, the market is likely to remain stock-specific. Trends in foreign institutional investor (FII) flows and cues from global markets will play a critical role in driving sentiment through the session. Global Markets Update: Asian markets were mostly in the red on Monday, dragged lower by uncertainty over the shifting US tariff deadline. Japan's Nikkei 225 dipped 0.26%, while South Korea's Kospi shed 0.48%. Australia's S&P/ASX 200 hovered near the flat line in early trade. In the US, stock futures indicated a weak start for Wall Street. Dow Jones Industrial Average futures were down 146 points, or 0.32%. S&P 500 futures slipped 0.39%, and Nasdaq 100 futures declined 0.42%, reflecting cautious sentiment amid global trade concerns. About the Author Aparna Deb Stay updated with all the latest news on the Stock Market, including market trends, Sensex and Nifty updates, top gainers and losers, and expert analysis. Get real-time insights, financial reports, and investment strategies—only on News18. Location : New Delhi, India, India First Published: News business » markets Stock Market Updates: GIFT Nifty Hints Muted Start; Trump Shifts Tariff Deadline To Aug 1
