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The Enforcement Directorate has moved a Mumbai special court seeking to declare Nirav Modi's brothers, Neeshal and Nehal Modi, as Fugitive Economic Offenders in the Punjab National Bank fraud case. The hearing is scheduled for February 18. The agency has alleged that the two helped route and conceal proceeds of crime through shell companies and overseas transactions. Nehal Modi is fighting extradition from the US, while similar action has also been sought against senior executives of Nirav Modi's firm. The case involves alleged fraud exceeding INR 23,780 crore.
The Enforcement Directorate has approached a Mumbai court seeking to declare Nirav Modi's brothers, Neeshal Modi and Nehal Modi, as Fugitive Economic Offenders in connection with the Punjab National Bank fraud case. The applications have been filed under the Fugitive Economic Offenders Act before the special court handling Prevention of Money Laundering Act matters. The court is scheduled to hear the applications on February 18. Advertisement
If the court allows the request, the agencies will be able to attach and confiscate the assets of the two accused under the provisions of the FEO law. The ED has maintained that both brothers played active roles in helping conceal and route funds linked to the fraud.
According to the agency, Nehal Modi assisted Nirav Modi in moving and hiding large sums of money through a network of shell companies and overseas transactions. The investigation has pointed to the use of fake entities to layer and transfer proceeds of crime outside India.
The ED has further alleged that Neeshal Modi was involved in appointing dummy partners and acted as a signatory or beneficiary in certain Dubai-based shell companies during the period between 2011 and 2013. These entities were allegedly used to facilitate financial transactions linked to the scam.
Nehal Modi was arrested in the United States last year and is currently contesting extradition proceedings initiated by the ED and the Central Bureau of Investigation. Separately, the agency has also moved to declare senior executives of Nirav Modi's firm, Aditya Nanavati and Sandeep Mistry, as fugitive offenders for their alleged roles in the case.
Nirav Modi and his uncle Mehul Choksi are accused of siphoning off more than INR 23,780 crore from Punjab National Bank by misusing fraudulent Letters of Undertaking and foreign Letters of Credit, allegedly in collusion with bank officials. Nirav Modi was declared a Fugitive Economic Offender in 2019, while a similar plea against Choksi remains pending. Choksi is facing extradition proceedings, and Nirav Modi continues to be lodged in a London jail.
Source PTI
FAQ
Q1. What action has the Enforcement Directorate taken in the PNB fraud case?
The Enforcement Directorate has moved a special court in Mumbai seeking to declare Nirav Modi's brothers, Neeshal Modi and Nehal Modi, as Fugitive Economic Offenders under the Fugitive Economic Offenders Act. The applications have been filed in connection with their alleged involvement in the Punjab National Bank fraud case.
Q2. When will the court hear the ED's plea?
The special court dealing with Prevention of Money Laundering Act cases is scheduled to hear the Enforcement Directorate's applications on February 18. The court will decide whether the legal conditions required to declare the two as fugitive economic offenders are satisfied.
Q3. What are the allegations against Nehal Modi?
The ED has alleged that Nehal Modi assisted his brother Nirav Modi in routing and concealing proceeds of crime through a network of shell companies and overseas financial transactions. According to investigators, these activities were aimed at moving large sums of illicit funds out of India and obscuring their origin.
Q4. What role is Neeshal Modi accused of playing in the case?
Neeshal Modi is alleged to have been involved in appointing dummy partners and acting as a signatory or beneficiary in certain Dubai-based shell companies between 2011 and 2013. The ED claims these entities were used to facilitate financial transactions linked to the alleged fraud.
Q5. What is the current legal status of Nehal Modi?
Nehal Modi was arrested in the United States last year and is currently contesting extradition proceedings initiated by Indian authorities, including the Enforcement Directorate and the Central Bureau of Investigation. The outcome of these proceedings will determine whether he is brought back to India to face trial.
Q6. What is the broader context of the PNB fraud case?
Nirav Modi and his uncle Mehul Choksi are accused of siphoning off more than INR 23,780 crore from Punjab National Bank by misusing fraudulent Letters of Undertaking and foreign Letters of Credit, allegedly with the help of bank officials. Nirav Modi was declared a Fugitive Economic Offender in 2019 and is currently lodged in a London jail, while extradition proceedings against Mehul Choksi are ongoing.
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