NEW DELHI: In an important development, Nehal Modi - brother of fugitive Nirav Modi and one of the key accused in the Punjab National Bank's Rs 13,500 crore swindle and the related money laundering case - was arrested by US authorities from New York on Friday in an extradition case filed by ED and CBI.
In the PNB money laundering case, the main accused - Nirav Modi and Mehul Choksi - were earlier arrested in the UK and Belgium, respectively, on India's extradition request and pending Red Corner Notices. They are currently in prison and have been denied bail till pendency of their extradition proceedings .
Sources said the US department of justice has informed Indian authorities about Nehal's arrest and has also conveyed that it would oppose his bail application when it comes up in court on July 17.
"As per the complaint filed by the US prosecution, extradition proceedings are being pursued on two counts: one count of money laundering under the PMLA and one count of criminal conspiracy under the IPC," sources said.
According to chargesheets filed by ED earlier, Nehal played a key role in laundering proceeds of crime on behalf of his brother, Nirav. "He assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions," ED alleged in the chargesheet.
On his alleged role, sources said Nehal was personally overseeing that all the accounts and records were destroyed, and was influencing employees/witnesses to conceal money trail and proceeds of crime.
ED's evidence against Nehal includes his "footprint" in laundering huge stockpiles of gold, diamonds and cash consignments from Dubai and Hong Kong-based entities of Nirav.
According to charges levelled by the agencies, Nehal, after the scam was unearthed, took away diamonds worth $6 million and 150 boxes of pearls from Hong Kong, huge cash, including AED 150 million and 50kg gold from Dubai, and laundered them in safe havens.
"He destroyed digital evidence (mobile phones and servers) pertaining to the Nirav Modi case in Dubai and intimidated witnesses, sent them to Cairo, and destroyed their passports so that they cannot travel," sources said.
The development also represents coordination between Indian agencies and their US counterparts. Officials of ED and CBI will hold a "status conference" with the US prosecution on the nature of crime and charges slapped against him in India for laundering proceeds of crime. The details of non-bailable warrants against him and cognisance of chargesheets taken by the special courts would also be conveyed to the prosecution service.
Agencies, in their multiple chargesheets filed in the PNB case during 2018 and 2019, have levelled serious allegations against Nehal - of destroying evidence and laundering proceeds of crime on behalf of his brother. ED has attached Rs 2,700 crore worth of assets so far in this case in India and abroad. Nirav, Mehul and Nehal are among 34 persons/companies accused in the case.
In the PNB money laundering case, the main accused - Nirav Modi and Mehul Choksi - were earlier arrested in the UK and Belgium, respectively, on India's extradition request and pending Red Corner Notices. They are currently in prison and have been denied bail till pendency of their extradition proceedings .
Sources said the US department of justice has informed Indian authorities about Nehal's arrest and has also conveyed that it would oppose his bail application when it comes up in court on July 17.
"As per the complaint filed by the US prosecution, extradition proceedings are being pursued on two counts: one count of money laundering under the PMLA and one count of criminal conspiracy under the IPC," sources said.
According to chargesheets filed by ED earlier, Nehal played a key role in laundering proceeds of crime on behalf of his brother, Nirav. "He assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions," ED alleged in the chargesheet.
On his alleged role, sources said Nehal was personally overseeing that all the accounts and records were destroyed, and was influencing employees/witnesses to conceal money trail and proceeds of crime.
ED's evidence against Nehal includes his "footprint" in laundering huge stockpiles of gold, diamonds and cash consignments from Dubai and Hong Kong-based entities of Nirav.
According to charges levelled by the agencies, Nehal, after the scam was unearthed, took away diamonds worth $6 million and 150 boxes of pearls from Hong Kong, huge cash, including AED 150 million and 50kg gold from Dubai, and laundered them in safe havens.
"He destroyed digital evidence (mobile phones and servers) pertaining to the Nirav Modi case in Dubai and intimidated witnesses, sent them to Cairo, and destroyed their passports so that they cannot travel," sources said.
The development also represents coordination between Indian agencies and their US counterparts. Officials of ED and CBI will hold a "status conference" with the US prosecution on the nature of crime and charges slapped against him in India for laundering proceeds of crime. The details of non-bailable warrants against him and cognisance of chargesheets taken by the special courts would also be conveyed to the prosecution service.
Agencies, in their multiple chargesheets filed in the PNB case during 2018 and 2019, have levelled serious allegations against Nehal - of destroying evidence and laundering proceeds of crime on behalf of his brother. ED has attached Rs 2,700 crore worth of assets so far in this case in India and abroad. Nirav, Mehul and Nehal are among 34 persons/companies accused in the case.
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