CBI places Nirav Modi's former aide in custody after UAE extradition

A special court of the Central Bureau of Investigation (CBI) ordered that Sandeep Mistry, a close associate of fugitive jeweller Nirav Modi, remain in judicial custody until Oct. 6, after his recent extradition from the United Arab Emirates. The court’s decision, reported by The Hindu, follows the agency’s request to keep the 45‑year‑old under close watch while investigations continue.

Mistry’s arrest in Dubai on June 30 was part of a coordinated effort between Indian authorities and the UAE’s Federal Criminal Court. After a brief hearing in Abu Dhabi, the UAE court approved his surrender to India, marking one of the highest‑profile extraditions in the country’s fight against cross‑border financial crime. Upon arrival in New Delhi, he was transferred to the CBI’s custody, where he will face questioning related to the multi‑billion‑rupee fraud that rocked Punjab National Bank (PNB).

The PNB scandal, uncovered in early 2018, involved fraudulent letters of undertaking that allowed overseas entities to obtain credit without collateral. Investigators estimate the scheme siphoned off roughly ₹14,000 crore (about $1.7 billion), triggering a crisis for the state‑run lender and prompting a series of regulatory reforms in India’s banking sector. Nirav Modi, the mastermind behind the operation, fled the country in 2019 and has since been declared a proclaimed offender.

Mistry’s alleged role, according to The Hindu, centered on facilitating transactions between Modi’s firms and overseas banks, as well as coordinating the movement of funds through shell companies. While the CBI has not disclosed the exact charges, it is expected that the investigation will focus on money‑laundering, criminal conspiracy and violations of the Foreign Exchange Management Act.

The extradition underscores the growing willingness of Gulf states to cooperate with Indian law‑enforcement agencies on financial crimes. Since 2020, the UAE has handed over several suspects linked to Indian fraud cases, reflecting a broader diplomatic push to curb illicit capital flows.

Legal experts note that Mistry’s detention is likely to be a stepping stone toward building a case against the wider network that supported Modi’s operations. If convicted, he could face a lengthy prison term, and the proceedings may also shed light on how other intermediaries facilitated the misuse of PNB’s credit facilities.

The CBI’s next steps will involve detailed interrogations and the possible filing of formal charges. The outcome will be closely watched by the banking community, investors and policymakers, all keen to see whether the saga will finally bring accountability to those who exploited one of India’s largest public sector banks.