Charges Dropped in PNB Fraud Case, Modi Still Prime Accused

(IDEX Online) - Corruption charges against bank staff in the $1.85 billion PNB fraud have been dropped, after the Central Bureau of Investigation conceded there was no evidence to support them.    

But Nirav Modi, the fugitive diamantaire currently being held in a London prison, remains the prime accused in the case, and India is still pushing for him to be extradited and to stand trial.

A special CBI court in Mumbai found that the prosecution had failed to produce any incriminating material against bank employees that would satisfy the legal requirements under the Prevention of Corruption Act.

But this has little or no impact on Nirav Modi's own case. He faces fraud and money laundering charges under the Indian Penal Code and the Money Laundering Act, which are entirely separate legal provisions.

He is accused of using unauthorized Letters of Undertaking to obtain credit from overseas branches of Indian banks without proper collateral or approvals for over seven years, until the fraud was revealed in 2018.

The court's ruling simply means the prosecution could not prove that bank officials accepted bribes or showed criminal misconduct personally. The case was transferred to magistrate court and chargesheet will be filed only against private individuals.

This has no impact either on his extradition case. Modi, aged 49, has been in UK custody since his arrest in London in March 2019.

The UK High Court dismissed his appeal to reopen extradition proceedings in March 2026, clearing the path for his return to India

His uncle Mehul Choksi, also accused in the PNB fraud, was arrested in Belgium in April 2025. Extradition was approved in October 2025, but he still has an opportunity to appeal.

File pic of Nirav Modi.