Who is Nehal Modi? Arrested in US: Fugitive Diamond Trader Faces Extradition Over Loan Fraud Schemes

Fugitive diamond merchant Nehal Modi, younger brother of Nirav Modi and a suspect in Indian fraud cases, has been arrested in the US following an extradition request by Indian agencies.

The 46-year-old Belgian national, part of the family’s global diamond business, is wanted by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) for allegedly assisting his brother in siphoning funds from the ₹11,400 crore Punjab National Bank (PNB) loan scam.

Nehal Modi previously faced an Interpol Red Notice (though currently inactive) and holds a 2020 New York fraud conviction upheld in 2023. Manhattan prosecutors confirmed he fraudulently obtained $2.6 million in diamonds from LLD Diamonds USA by falsely claiming wholesale negotiations with Costco. He then pawned the gems for personal expenses instead of paying LLD within 90 days as agreed.

According to Media Reports, Nehal similarly helped Nirav Modi divert PNB scam funds through shell companies. His arrest mirrors the UK detention of brother Nirav Modi, who remains jailed since 2019 while fighting extradition.

Deccan Herald reports Nehal Modi’s next US court hearing is scheduled for July 17, where he may seek bail. Indian agencies ED and CBI must now present their extradition case in US courts, with his Belgian citizenship potentially complicating proceedings.