Mumbai: The Punjab National Bank (PNB) fraud probe has received a major push with the Central Bureau of Investigation (CBI) arresting Sandeep Bharat Mistry, a key confidant of fugitive jeweller Nirav Modi, following his forced return from the UAE.
Mistry touched down in India on the night of September 28 and was immediately taken into custody by the CBI’s Bank Securities and Fraud Branch in Mumbai. A special CBI court later remanded him to judicial custody till October 6.
The arrest comes after a coordinated push by the CBI, the Ministry of External Affairs and the Ministry of Home Affairs, which secured Mistry’s deportation from the UAE. An Interpol Red Notice, issued in July 2026 at the CBI’s behest, led to his detection and detention by Emirati authorities, as reported by DNA.
Mistry’s Role In The Scam
The CBI alleges that Mistry was not just a peripheral figure but a key operator in the fraud network built around Nirav Modi. He is accused of managing day-to-day operations of shell companies and other entities used to siphon off funds from PNB.
Investigators say he served as the connective thread between various firms, issuing directives through encrypted, self-erasing messaging apps to avoid leaving a digital trail. He is also charged with helping forge import documents, stage fake trade deals and pressuring nominee directors to mask the money trail.
Next Steps In The Case
With Mistry now behind bars, the CBI will seek further custodial interrogation after his next court appearance on October 6. The agency has already filed a chargesheet outlining how fictitious international trade transactions and fraudulent Letters of Undertaking (LoUs) were used to cheat PNB of nearly ₹6,498.20 crore.