Diamond Thief CAUGHT: Nehal Modi Nabbed in America After Massive Global Manhunt
In a major breakthrough in India’s pursuit of economic fugitives, Nehal Modi, brother of fugitive diamond tycoon Nirav Modi, was arrested in the United States on July 4, 2025, following extradition requests from India’s CBI and Enforcement Directorate (ED). Nehal, a key accused in the ₹13,000 crore Punjab National Bank (PNB) scam, was taken into custody under charges that include money laundering, criminal conspiracy, and evidence tampering. He also faces separate charges in a $2.6 million diamond fraud involving LLD Diamonds USA.
His arrest is viewed as a critical step forward in dismantling the international network behind one of India’s largest banking frauds. According to the US Department of Justice, Nehal was apprehended based on a Red Corner Notice issued by Interpol, after sustained diplomatic and legal pressure from Indian authorities.
The next court hearing is scheduled for July 17, 2025, where Nehal may seek bail. However, US prosecutors are expected to oppose it, signaling the seriousness with which the case is being handled by both Indian and American agencies.
Nehal Modi busted over laundering, conspiracy, diamond fraud in US
Nehal Modi is no stranger to controversy. A Belgian national raised in Antwerp, he previously served as a director at Firestar Diamonds USA and was closely involved with Ithaca Trust, a financial entity allegedly used to reroute stolen PNB funds into real estate deals and shell companies.
The ED and CBI have accused Nehal of helping Nirav Modi launder the illicit proceeds from the PNB scam across various jurisdictions, including UAE, Hong Kong, British Virgin Islands, and the US. Under the Prevention of Money Laundering Act (PMLA), 2002, and the Indian Penal Code, he is charged with Section 3 (Money Laundering), Section 120-B (Criminal Conspiracy), and Section 201 (Destruction of Evidence).
In addition, Nehal was charged in the United States with a $2.6 million diamond fraud, where he allegedly misrepresented a business deal with Costco to obtain high-value diamonds from LLD Diamonds USA, which he later pawned or sold for personal gain. This case further intensified calls for his extradition, as it added an American legal angle to India’s long-standing extradition efforts.
Perhaps more alarmingly, ED investigations revealed that Nehal and Nirav’s aide Mihir Bhansali destroyed UAE-based digital servers, removed 50 kg of gold, and stashed away large amounts of cash, thereby obstructing the probe.
India’s Ministry of External Affairs is now actively coordinating with US authorities to expedite the extradition process, under the India-US extradition treaty.
This arrest not only tightens the noose around the larger PNB scam nexus but also boosts India’s recent aggressive stance against fugitives hiding abroad.
