PNB Scam: CBI Arrests Nirav Modi Associate Sandeep Mistry After UAE Extradition

The Central Bureau of Investigation (CBI) has arrested Sandeep Mistry, an alleged associate of fugitive businessman Nirav Modi, following his extradition from the United Arab Emirates in connection with the Punjab National Bank (PNB) fraud case.

According to CBI officials, Mistry was extradited to India on Monday and formally arrested by the agency in Mumbai on Tuesday.

He was subsequently produced before a special CBI court. The agency did not seek his custodial remand, following which the court sent Mistry to judicial custody until October 6.

Arrest Follows Non-Bailable Warrant

Mistry’s arrest was carried out in accordance with a non-bailable warrant issued by a special court in November 2025.

He had served as a director of Fancy Creations Ltd, a Hong Kong-based company associated with Nirav Modi.

The CBI has alleged that Mistry was involved in the wider criminal conspiracy through which PNB was allegedly defrauded of approximately ₹6,498.20 crore.

The allegations form part of the broader investigation into fraudulent transactions involving the Brady House branch of Punjab National Bank in Mumbai.

CBI Allegations Against Mistry

The investigating agency has alleged that Mistry, along with Nirav Modi’s brother Nehal Modi and another wanted accused, was involved in efforts to move individuals associated with companies linked to Nirav Modi after the fraud case came to light in India.

According to the CBI, employees who were allegedly functioning as dummy directors of various Dubai-based firms connected with the group were threatened and pressured to leave the UAE.

The agency has alleged that some of them were forced to relocate to Cairo because they feared arrest in India.

The CBI has further alleged that mobile phones belonging to the individuals were destroyed in an attempt to eliminate evidence.

These are allegations made by the investigating agency and will be subject to proceedings before the court.

Nirav Modi Case and the PNB Fraud

The PNB case emerged as one of India’s major banking fraud investigations after authorities uncovered alleged fraudulent transactions involving Letters of Undertaking, or LoUs, issued from PNB’s Brady House branch in Mumbai.

Investigators have alleged that Nirav Modi, his uncle Mehul Choksi and others used fraudulent LoUs to obtain credit from overseas branches of Indian banks.

The Enforcement Directorate (ED) and CBI have been investigating the case since 2018.

The ED is separately investigating alleged money-laundering offences, while the CBI’s probe focuses on the alleged bank fraud and related criminal conspiracy.

What Are Letters of Undertaking?

A Letter of Undertaking was a form of bank guarantee used in international trade finance.

In the PNB case, investigators alleged that fraudulent LoUs were issued to facilitate credit for entities linked to Nirav Modi and his associates.

The alleged transactions resulted in substantial liabilities for PNB and other participating banks.

The case subsequently led to investigations involving several companies and individuals connected with the Modi and Choksi business groups.

Mistry’s Extradition From UAE

Mistry’s arrival in India follows extradition proceedings in the UAE.

After reaching Mumbai, he was taken into CBI custody and formally arrested in accordance with the outstanding warrant.

The decision not to seek police remand meant that the court sent him to judicial custody rather than extending his custodial interrogation.

His next court proceedings will determine the subsequent course of the case against him.

Nirav Modi and Mehul Choksi Remain Central to the Investigation

Nirav Modi and Mehul Choksi are among the principal accused associated with the wider PNB fraud investigation.

Both have been outside India while Indian agencies have pursued criminal and financial investigations connected with the case.

The broader alleged bank fraud has been valued at more than $2 billion, or over ₹13,000 crore, in various government and investigative proceedings, although individual cases and charges cover different transactions and accused persons.

The CBI and ED investigations have involved multiple companies, bank officials and individuals allegedly connected with the transactions.

What Happens Next?

With Mistry now in judicial custody, proceedings will continue before the special CBI court.

The prosecution will have to establish the allegations against him through evidence during the legal process. Allegations made by the investigating agency are not findings of guilt.

Mistry’s extradition adds another accused person to the list of individuals brought within the reach of Indian investigators in the long-running PNB fraud case.