CBI: Arrests Sandeep Mistry, Nirav Modi Aide, After UAE Deportation

• CBI arrested Sandeep Bharat Mistry, a key associate of Nirav Modi, following his deportation from the UAE.
• Mistry is accused of playing a central role in a conspiracy to defraud Punjab National Bank of approximately Rs 6,498.20 crore.
• His alleged activities include using clandestine communication, forging documents, coercing dummy company directors, and siphoning funds.
• An Interpol Red Notice issued in July 2026 facilitated his apprehension and deportation from the UAE.
• This arrest is part of the broader PNB fraud investigation, which also involves Nirav Modi and Mehul Choksi, with total alleged fraud exceeding Rs 13,000 crore.

This development highlights the persistent and cross-border enforcement efforts by Indian agencies against individuals implicated in significant financial fraud, even years after the initial events.

The Central Bureau of Investigation (CBI) has apprehended Sandeep Bharat Mistry, a close associate of fugitive diamantaire Nirav Modi, following his deportation from the United Arab Emirates (UAE). Mistry arrived in Mumbai late on September 28 and was immediately taken into custody by the CBI's Bank Securities and Fraud Branch (BSFB). This arrest marks a significant step in the ongoing investigation into the multi-million-dollar Punjab National Bank (PNB) fraud case.

Upon his arrival, Mistry was produced before a special CBI court in Mumbai on September 29. The court subsequently remanded him to judicial custody, which is set to last until October 6. Notably, the investigating agency did not seek police custody during this initial hearing.

The process of securing Mistry's return to India involved extensive coordination between the CBI, the Ministry of External Affairs, and the Ministry of Home Affairs. An Interpol Red Notice, crucial for international apprehension, had been issued against Mistry in July 2026 at the CBI's specific request. Following this notice, authorities in the UAE successfully located and arrested him, initiating the deportation proceedings that ultimately led to his transfer to Indian jurisdiction. A non-bailable warrant had also been issued against Mistry by a special court in November 2025, further paving the way for his arrest upon his return.

The CBI has leveled serious allegations against Sandeep Mistry, asserting that he played a pivotal role in the elaborate conspiracy that defrauded Punjab National Bank of approximately Rs 6,498.20 crore. According to the agency, Mistry served as a crucial intermediary, connecting various entities associated with Nirav Modi and overseeing their daily operations.

Further accusations detail Mistry's alleged use of clandestine, self-deleting communication platforms, which the CBI claims were employed specifically to obscure evidence of their illicit activities. He is also accused of assisting in the fabrication of import-export documents to create a facade of legitimacy for fictitious transactions involving diamonds, gold, and pearl jewellery. The CBI's chargesheet, which has already been filed against Mistry and other co-accused, outlines these alleged actions.

Moreover, Mistry is implicated in coercing individuals who were nominally listed as directors of dummy foreign companies. The agency alleges that these individuals faced threats of arrest, forced relocation, and seizure of their electronic devices, compelling them to sign documents that falsely presented them as the genuine owners of these shell corporations. Additionally, Mistry is accused of participating in the siphoning of funds from bank accounts belonging to these dummy companies located in the UAE.

Mistry's arrest is a component of the much larger financial scandal involving Nirav Modi, which centers on the alleged fraudulent issuance of Letters of Undertaking (LoUs) through PNB's Brady House branch in Mumbai. These alleged transactions were then utilized to secure credit from the overseas branches of various Indian banks. The broader investigation encompasses Nirav Modi himself, his uncle Mehul Choksi, and numerous other individuals.

While the CBI is primarily focused on investigating the underlying bank fraud and criminal conspiracy aspects of the case, the Enforcement Directorate (ED) has been conducting a parallel investigation into the matter as a money laundering case since 2018. The total alleged fraud attributed to the Nirav Modi group, when considering all PNB-related transactions, is reported to exceed Rs 13,000 crore, with the specific CBI case involving Mistry pertaining to an alleged fraud of about Rs 6,498.20 crore.

This development highlights the persistent and cross-border enforcement efforts by Indian agencies against individuals implicated in significant financial fraud, even years after the initial events. The successful deportation of Sandeep Mistry from the UAE, facilitated by an Interpol Red Notice and inter-agency cooperation, underscores the long reach of Indian law enforcement in pursuing those accused of economic offenses.

The pursuit of justice in this complex case continues on multiple fronts. Nirav Modi, the alleged mastermind, remains subject to legal proceedings in the United Kingdom, with his extradition to India appearing increasingly likely. In June 2026, a London court ordered Modi to pay over Rs 100 crore to the Bank of India, holding him personally liable under a guarantee linked to a loan extended to Firestar Diamond FZE. Furthermore, his attempt to reopen his extradition case was rejected by the UK High Court in March, signaling continued progress in the efforts to bring him to justice.

This development underscores the persistent and cross-border enforcement efforts by Indian agencies against individuals involved in major financial fraud, even years after the initial events. Lawyers and compliance officers should note the significant personal liability and long-term legal risks for individuals, including associates, who facilitate complex financial crimes, particularly those involving international elements and shell companies, and the effectiveness of international cooperation mechanisms like Interpol Red Notices.

Source: Original reporting via news agencies