ED Moves to Declare Nirav Modi's Brothers as Fugitive Economic Offenders in PNB Fraud Case
The Enforcement Directorate (ED) has intensified its legal pursuit in the multi-crore Punjab National Bank (PNB) fraud case by seeking to declare four more accused, including two brothers of main accused Nirav Modi, as fugitive economic offenders. This move aims to expedite the confiscation of their properties under the Fugitive Economic Offenders (FEO) Act of 2018.
Details of the ED's Application
In separate applications filed before a special court in Mumbai, the ED has requested that Neeshal Modi and Nehal Modi, brothers of Nirav Modi, along with Sandeep Mistry and Aditya Nanavati, be declared fugitive economic offenders. Neeshal and Nehal are allegedly linked to companies under investigation, while Mistry served as a director in one of Modi's Hong Kong-based companies, and Nanavati was a senior executive in the Firestar Group, managing operations for Modi's businesses in Hong Kong.
The FEO Act empowers authorities to attach and confiscate properties of economic offenders who have fled the country and are not present for criminal proceedings, even before the trial begins. This step is part of a broader strategy to recover assets in high-profile fraud cases.
Background and Legal Proceedings
The PNB fraud case involves allegations of unlawful financial gains through the issuance of fraudulent Letters of Undertaking from the public sector bank. The trial has yet to commence, but the ED has been proactive in seeking FEO declarations. Previously, the agency successfully moved a plea to declare Nirav Modi as a fugitive economic offender, with the court granting this in 2019.
Earlier, the special court had issued non-bailable warrants against the absconding accused and declared them as proclaimed offenders, setting the stage for the current FEO applications.
Allegations Against the Accused
The ED has made specific claims against the accused in its applications:
- Neeshal Modi: Allegedly a partner in firms such as Diamonds R US, Solar Exports, and Stellar Diamond, he is accused of actively participating in appointing dummy partners in these firms in 2016. He also served as a director in Firestar Diamond, where the ED claims huge sums were transferred from Hong Kong-based companies.
- Nehal Modi: Accused of participating in concealing laundered amounts from the alleged fraud. In 2025, US authorities arrested Nehal following an extradition request by India.
- Money Laundering: The ED alleges that funds from the fraud were siphoned off and laundered to various overseas companies, with these accused playing key roles in the process.
Current Status of Key Figures
Nirav Modi is currently in the United Kingdom, facing extradition proceedings to India. His uncle, Mehul Choksi, who is also implicated in a similar case, is undergoing extradition proceedings in Belgium. The international dimension of this case highlights the global efforts to bring economic offenders to justice.
The ED's latest move underscores its commitment to using the FEO Act to target absconding individuals in high-stakes financial frauds, aiming to deter such offenses and recover illicit assets for the Indian exchequer.
