PNB Loan Fraud: ED Seeks to Declare Nehal Modi Fugitive Economic Offender, Calls Him Key Conspirator
Fugitive businessman Nirav Modi’s brother, Nehal Modi, was the “main co-conspirator” in the ₹6,498 crore Punjab National Bank (PNB) loan fraud, the Enforcement Directorate (ED) said. In its application to declare him a Fugitive Economic Offender (FEO), the ED stated that Nehal played a key role in transferring and hiding millions of dollars.
Nehal Modi, 46, has been in a US prison since July 2025 after he was arrested on India’s extradition request. He is accused of helping his uncle, Mehul Choksi, who is currently in a Belgian jail, to launder money. The money was allegedly routed through Samuels Jewellers Inc and Diamlink Inc. These companies reportedly received about 19 million US dollars from Dubai-based shell companies linked to Choksi.
The ED filed its application in a Mumbai court on February 3 under the Fugitive Economic Offenders (FEO) Act, 2018. The agency said Nehal Modi was involved in destroying evidence and influencing witnesses.
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The FEO Act was introduced in 2018 to prevent economic offenders from escaping Indian law by staying abroad. Under this law, authorities can attach and confiscate properties and proceeds of crime if the amount involved is more than ₹100 crore. This action does not depend on a court conviction.
The ED described Nehal Modi as a close associate of Nirav Modi. It said Nehal left India after the PNB fraud was exposed in 2018. He did not respond to summons issued by authorities and did not join the trial.
The agency referred to several documents on record, including charge sheets, prosecution complaints, pending non-bailable warrants, a Red Notice, and the conduct of the accused. Based on these, the ED said Nehal Modi should be declared a Fugitive Economic Offender.
According to the ED, Nehal managed US-based companies Twin Fields Investments Limited and Bailey Bank and Biddle. These companies allegedly received at least 50 million US dollars from Nirav Modi’s dummy companies. The ED also said that Nehal was the protector and investment advisor of “The Ithaca Trust.” In that role, he supervised the movement of 30 million US dollars, which was allegedly used to buy properties in the United States.
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The ED further alleged that after the fraud was detected, Nehal took control of the proceeds of crime. It claimed that he removed major assets from different countries. These included 6 million US dollars worth of diamonds, 150 boxes of pearls from Hong Kong, 3.5 million UAE dirhams in cash, and 50 kilograms of gold from Dubai.
The agency also alleged that Nehal tried to obstruct the investigation. He allegedly ordered the destruction of digital evidence, including mobile phones and a secure server in Dubai that handled company transactions.
The ED further claimed that Nehal interfered with witnesses. It said he forcibly moved dummy directors to Cairo, took away their passports, and pressured them to sign false affidavits to distance Nirav Modi from the companies. In one case, he allegedly offered ₹20 lakh to a witness to give false testimony before European judicial authorities.
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The ED has also filed similar applications this month to declare Nirav Modi’s other brother, Neeshal Modi, senior Firestar Group executive Aditya Nanavati, and Hong Kong-based company director Sandeep Mistry as Fugitive Economic Offenders.
