29 September,2026 06:19 PM IST | Mumbai | mid-day online correspondent
Sandeep Mistry was a director in a Hong Kong-based company linked to Nirav Modi (above), the CBI said. File Pic
The Central Bureau of Investigation (CBI) has arrested businessman Sandeep Mistry, an associate of fugitive diamond merchant Nirav Modi, following his extradition from the United Arab Emirates (UAE) in connection with the Punjab National Bank (PNB) fraud case, reported the PTI.
Mistry was extradited to India on Monday and was formally arrested by the CBI in Mumbai on Tuesday. He was subsequently produced before a special CBI court.
The agency did not seek his custody, following which the court remanded Mistry to judicial custody until October 6.
According to the PTI, the arrest was carried out in compliance with a non-bailable warrant issued by a special court in November 2025.
Mistry was a director of Fancy Creations Ltd, a Hong Kong-based company linked to Nirav Modi, according to the CBI.
The agency has alleged that Mistry was actively involved in a criminal conspiracy with Modi and other accused persons, through which PNB was allegedly defrauded of nearly Rs 6,498.20 crore, as per the PTI.
The CBI has also alleged that Mistry, along with Nirav Modi's brother Nehal and another wanted accused, threatened employees who were acting as dummy directors of companies associated with Modi in Dubai, the news agency reported.
According to the agency, the employees were allegedly forced to leave Dubai and move to Cairo after being threatened with arrest following the registration of the case in India.
The CBI has further alleged that the accused destroyed their mobile phones in an attempt to erase evidence.
Nirav Modi, his uncle Mehul Choksi and others have been under investigation by the Enforcement Directorate (ED) and CBI since 2018 in connection with the alleged bank fraud.
The accused are alleged to have defrauded PNB of more than USD 2 billion, or over Rs 13,000 crore, in a case involving fraudulent Letters of Undertaking (LoUs) issued through the bank's Brady House branch in Mumbai.
The ED is investigating the case under money laundering laws, while the CBI is probing the alleged bank fraud and criminal conspiracy.
Following his production before the special CBI court on Tuesday, Mistry was sent to judicial custody until October 6.
The allegations made by the CBI are part of the ongoing criminal proceedings, and will be tested before the court.
(with PTI inputs)
