In a significant escalation of its decade-long pursuit of justice in India’s most infamous banking scandal, the Central Bureau of Investigation (CBI) has formally moved to declare two close aides of fugitive jeweler Nirav Modi as proclaimed offenders. This legal maneuver—filed before a special court in Mumbai—marks a critical step in the agency’s effort to dismantle the entire network behind the ₹14,000 crore ($2 billion) Punjab National Bank (PNB) fraud that shook India’s financial system in 2018 .
The individuals in question, identified as key operatives who allegedly facilitated fraudulent Letters of Undertaking (LoUs) and managed offshore shell companies, have remained untraceable since the scam surfaced. With repeated summons ignored and no appearance before investigators, the CBI argues that declaring them proclaimed offenders is not just justified—it’s essential to prevent further evasion of justice .
Table of Contents
- Who Are the Nirav Modi Aides in Question?
- What Does ‘Nirav Modi Aides Proclaimed Offenders’ Mean Legally?
- The PNB Scam: A Recap of India’s Largest Bank Fraud
- Why the CBI Is Acting Now: Timing and Strategy
- Global Manhunt: Tracking Nirav Modi’s Network
- Implications for Indian Banking and Anti-Fraud Laws
- Conclusion: Justice Delayed, But Not Abandoned
- Sources
Who Are the Nirav Modi Aides in Question?
While the CBI has not publicly named the two individuals in recent filings—likely to avoid tipping off their whereabouts—investigative reports from 2018–2020 identified several core members of Nirav Modi’s inner circle. These include executives from his Firestar group and Dubai-based entities like M/s Solar Exports and M/s Stellar Diamonds, which were used to route fake LoUs issued by corrupt PNB officials .
These aides allegedly handled everything from document forgery to laundering proceeds through Mauritius and Hong Kong. Their disappearance shortly after the scam broke suggests coordinated planning—a pattern seen across high-profile white-collar crimes in India.
What Does ‘Nirav Modi Aides Proclaimed Offenders’ Mean Legally?
Under Section 82 of the Code of Criminal Procedure (CrPC), a court can declare someone a “proclaimed offender” if they fail to appear despite repeated summons and there’s reason to believe they’re evading trial . Once declared:
- Their property can be attached and auctioned by authorities.
- Interpol Red Notices can be more easily issued.
- They lose the right to seek anticipatory bail.
- Any person harboring them becomes criminally liable.
This status is typically reserved for absconding accused in serious offenses—making it a powerful tool in complex financial fraud cases like the PNB scam.
The PNB Scam: A Recap of India’s Largest Bank Fraud
At its core, the fraud involved the issuance of unauthorized Letters of Undertaking (LoUs) by rogue PNB employees at the Brady House branch in Mumbai. These LoUs—essentially bank guarantees—were used by Nirav Modi’s firms to secure short-term credit from overseas branches of Indian banks like Allahabad Bank and Axis Bank .
Key facts:
- Duration: Fraud operated from 2011 to 2017.
- Amount: Over ₹14,000 crore (~$2 billion).
- Modus Operandi: Bypassed SWIFT messaging system; no collateral or margin.
- Main Accused: Nirav Modi, Mehul Choksi (fugitive), and several PNB officials.
For a detailed timeline, see our explainer on [INTERNAL_LINK:pnb-scam-full-timeline].
Why the CBI Is Acting Now: Timing and Strategy
After years of slow progress, the CBI appears to be accelerating its strategy in 2026. Possible reasons include:
- Political pressure: The government faces scrutiny over unresolved economic crimes.
- Judicial deadlines: Courts are demanding faster resolution of legacy fraud cases.
- International cooperation: Improved ties with the UK and Belgium (where Nirav is jailed) may yield new leads.
Declaring these aides as proclaimed offenders also strengthens India’s extradition requests by demonstrating active judicial proceedings.
Global Manhunt: Tracking Nirav Modi’s Network
While Nirav Modi is currently imprisoned in the UK fighting extradition, and his uncle Mehul Choksi is reportedly in Belize after fleeing Antigua, dozens of lower-level operatives remain at large. Many are believed to be hiding in Dubai, Singapore, or Eastern Europe—jurisdictions with weak extradition treaties with India .
The Enforcement Directorate (ED) and CBI have been working with the International Criminal Police Organization (INTERPOL) to track financial trails and issue look-out circulars. However, without concrete evidence of location, arrests remain elusive .
Implications for Indian Banking and Anti-Fraud Laws
The PNB scam exposed catastrophic gaps in India’s banking oversight. In response, the Reserve Bank of India (RBI) mandated:
- Integration of SWIFT with core banking systems.
- Stricter LoU issuance protocols.
- Enhanced whistleblower protections.
Yet, experts argue that without swift prosecution of all conspirators—not just figureheads—deterrence remains weak. As one former RBI official noted, “Punishing only the visible faces sends the wrong message to future fraudsters.”
Conclusion: Justice Delayed, But Not Abandoned
The CBI’s push to declare these two Nirav Modi aides proclaimed offenders is more than procedural—it’s symbolic. It signals that India’s investigative agencies are still committed to holding every link in the fraud chain accountable, no matter how long it takes. While Nirav Modi may be behind bars abroad, the full arc of justice demands that his enablers face trial too. Only then can the PNB scam truly serve as a lesson—not just a headline.
Sources
- “Declare 2 Nirav aides proclaimed offenders: CBI.” Times of India, January 12, 2026.
- PTI. “CBI moves court to declare Nirav Modi associates as proclaimed offenders.” India Today, January 12, 2026.
- Enforcement Directorate. “PNB Fraud Case: Charge Sheets & Entity List.” Ministry of Finance, Government of India.
- Code of Criminal Procedure, 1973 – Section 82. indiacode.nic.in.
- RBI. “Report on Frauds in Commercial Banks – 2018.” Reserve Bank of India.
- INTERPOL. “Red Notices and Fugitive Tracking.” interpol.int.