CBI nabs Nirav Modi’s aide Sandeep Mistry after deportation from UAE

The Central Bureau of Investigation (CBI) arrested Sandeep Mistry, a close associate of fugitive diamond merchant Nirav Modi, in Mumbai on Tuesday after extraditing him from the United Arab Emirates. This arrest is a major development in the ongoing Punjab National Bank fraud case, one of India’s biggest banking scandals.

Mistry was extradited on Monday and brought before a special CBI court the next day. The agency did not ask for police custody, so the court sent him to judicial custody until October 6. This action followed a non-bailable warrant issued by a special court in November 2025.

Mistry was the director of Fancy Creations Ltd, a Hong Kong company connected to Nirav Modi. Investigators say he was actively involved in a scheme that cheated Punjab National Bank out of nearly Rs 6,498.20 crore. The larger fraud, which involved fake Letters of Undertaking from PNB’s Brady House branch in Mumbai, is estimated at over $2 billion, or more than Rs 13,000 crore.

The CBI says Mistry worked closely with Nirav Modi and others accused in the case. The agency also claims that Mistry, along with Modi’s brother Nehal and another wanted person, threatened employees who acted as dummy directors for Modi’s companies in Dubai. After the case was filed in India, these employees were reportedly forced to leave Dubai and move to Cairo because they feared arrest. The accused are also said to have destroyed their phones to remove evidence.

The CBI and the Enforcement Directorate have investigated Nirav Modi, his uncle Mehul Choksi, and several others since 2018. The CBI is looking into the bank fraud, while the ED is investigating related money-laundering charges. The accused are believed to have worked with bank officials to get fake LoUs that allowed them to secure large overseas loans.

The PNB case was first discovered in early 2018 when the bank found that LoUs had been issued without proper collateral or paperwork. These documents let Modi’s companies get buyer’s credit from Indian banks’ overseas branches. When the loans went unpaid, PNB had to cover the losses. The size of the losses and the involvement of well-connected business people made this a high-profile case that has continued for years, with some accused still outside India.

Mistry’s extradition from the UAE and his arrest in Mumbai are important steps in bringing alleged co-conspirators to Indian courts. While he is in judicial custody until early October, investigators will have time to question him about Fancy Creations Ltd, the circulation of money, and the reported threats to dummy directors.

This case continues to show weaknesses in trade-finance tools and the difficulties of tracking down accused people in other countries. While Nirav Modi and Mehul Choksi remain outside India, bringing back an associate like Mistry helps the CBI gather more evidence and testimony that could strengthen the prosecution.