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CBI brings key Nirav Modi case accused back (Img: IANS)
New Delhi: The Central Bureau of Investigation (CBI) has secured the deportation of Red Notice subject Sandeep Mistry from the UAE in connection with the Nirav Modi-Punjab National Bank fraud case. His deportation was carried out in coordination with the Ministry of External Affairs (MEA) and the Ministry of Home Affairs (MHA).
Mistry is wanted in a case registered by the CBI’s Bank Securities Fraud Branch (BSFB), Mumbai, over alleged bank fraud involving fictitious international trade transactions. Investigating agency accused him of playing a key role between various entities, overseeing their day-to-day operations and issuing instructions through clandestine, self-deleting communication platforms to conceal evidence.
As per CBI, Mistry also facilitated the preparation of forged import-export documents to create the appearance of fictitious trade in diamonds, gold and pearl jewellery.
The agency further alleged that Mistry, along with other accused persons, coerced dummy directors of foreign companies by threatening them with arrest, relocating them, seizing their electronic devices and forcing them to sign documents falsely presenting them as genuine owners of the companies.
The CBI said Mistry was also involved in siphoning funds from the bank accounts of dummy companies in the UAE. A charge-sheet has already been filed before the competent court.
At the CBI’s request, an INTERPOL Red Notice against Mistry was published in July 2026. He was subsequently geo-located and arrested by UAE authorities, following which the deportation process was initiated.
The agency said Mistry was traced, apprehended and brought back to India within approximately two months of the Red Notice being issued, describing the development as an example of international coordination between the agencies concerned.
After his return, Mistry was taken into custody by CBI BSFB officers in Mumbai, produced before the competent court and sent to judicial custody, the release said.
The case relates to a loan facility extended by Bank of India to Firestar Diamond FZE in 2012, several years before the PNB fraud came to light.
Meanwhile, fugitive diamantaire Nirav Modi, who has been in a London prison since 2019, has suffered another legal setback in the UK. The London Circuit Commercial Court ordered him to pay more than USD 10.7 million, or over Rs 100 crore, to Bank of India in connection with a loan extended to a Dubai-based company promoted by him.
On August 3, 2012, Modi had executed a personal guarantee in favour of Bank of India, under which he agreed to repay the loan if the borrowing company defaulted.
According to court records, the financial position of the Firestar Group deteriorated significantly after investigations into the alleged banking fraud emerged in early 2018. The CBI registered its first FIR in the PNB fraud case in February 2018. Investigating agencies later alleged that the fraud involved transactions worth nearly USD 2 billion.
Bank of India said no payments were made despite repeated demands. Modi challenged the recovery proceedings, arguing that his personal guarantee was unenforceable and that the bank had not made a valid demand for repayment.
He also claimed that he had not received notices issued by the bank in April 2018 and October 2025 because he was not in India at the time.
The court rejected those arguments, holding that the notices had been properly served. It noted that the October 2025 demand was also sent to the UK prison where Modi is currently lodged. The court further observed that his legal representatives had received a copy of the April 2018 notice in 2019.
The court concluded that Bank of India was entitled to demand repayment, accelerate the loan facility and enforce Modi’s personal guarantee.
Modi continues to contest extradition proceedings initiated by India. In March this year, the UK High Court rejected his attempt to reopen his extradition challenge, citing assurances provided by the Indian government.
He is now pursuing legal remedies before the European Court of Human Rights to halt his extradition to India, where he is wanted by the CBI and Enforcement Directorate in connection with the alleged multi-billion-dollar PNB fraud case.
