The Central Bureau of Investigation (CBI) has arrested Sandeep Bharat Mistry, an associate of fugitive businessman Nirav Modi, after he was deported from the United Arab Emirates and brought back to India in connection with the Punjab National Bank (PNB) fraud case.
Mistry arrived in Mumbai late on September 28 and was taken into custody by the CBI’s Bank Securities and Fraud Branch. He was produced before a special CBI court on September 29 and was sent to judicial custody until October 6. The arrest followed a non-bailable warrant issued by a special court in November 2025.
Mistry had served as a director of Fancy Creations Ltd, a Hong Kong-based company linked to Nirav Modi. According to the CBI, he allegedly acted as a key link between several entities associated with Modi and was involved in their day-to-day operations.
Investigators allege that Mistry played an active role in the criminal conspiracy through which PNB was allegedly cheated of nearly ₹6,498.20 crore. The agency has also alleged that he helped prepare forged import-export documents to create the appearance of fictitious international trade involving diamonds, gold and pearl jewellery.
The investigation covers financial transactions carried out through companies and bank accounts allegedly connected with the wider fraud. The CBI has further alleged that Mistry and other accused persons used self-deleting communication platforms to issue instructions and conceal evidence.
Investigators have also accused him and other associates of coercing people who were allegedly used as dummy directors of foreign companies. According to the allegations, some of these individuals were threatened, forced to relocate, had electronic devices seized and were made to sign documents that portrayed them as genuine owners of the companies.
The CBI has additionally alleged that funds were siphoned through bank accounts of dummy companies in the UAE. These allegations will be examined through the judicial process.
The arrest followed international efforts to trace Mistry, who was wanted in the PNB fraud investigation. An Interpol Red Notice was issued against him in July 2026 at the request of the CBI. UAE authorities subsequently traced and arrested him, following which deportation proceedings were initiated.
The CBI said the operation involved coordination with the Ministry of External Affairs and the Ministry of Home Affairs. Mistry was brought to Mumbai on September 28, where CBI officers took him into custody.
The development highlights the role of international cooperation in financial crime investigations, particularly when accused persons are located outside India. The CBI has described Mistry as an important link in the network of entities associated with the alleged PNB fraud.
The broader PNB scam came to light in 2018 and centres on alleged fraudulent Letters of Undertaking (LoUs) issued through PNB’s Brady House branch in Mumbai.
The alleged misuse of these banking instruments allowed companies linked to Nirav Modi and others to obtain credit from overseas branches of Indian banks without the required safeguards, according to the investigation.
The overall fraud involving PNB has been estimated at more than $2 billion, while the CBI’s case against Mistry specifically relates to alleged transactions involving nearly ₹6,498.20 crore.
Nirav Modi, his uncle Mehul Choksi and several other individuals have faced investigations by the CBI and Enforcement Directorate in connection with the case. The Enforcement Directorate has separately investigated alleged money-laundering aspects of the financial transactions.
Mistry’s judicial custody has been extended until October 6. The CBI did not seek his remand when he was produced before the special court on September 29.
The agency is expected to examine his alleged role in the financial transactions, his links with companies associated with Nirav Modi and the movement of funds and documents relevant to the case.
His return to India marks another development in the long-running investigation into the PNB fraud, as Indian agencies continue to pursue accused persons and financial trails across jurisdictions.
The case will now proceed through the judicial process, with investigators examining the evidence surrounding Mistry’s alleged involvement. The allegations against him remain subject to court proceedings.