The rapid unraveling of a billionaire diamond dealer to the stars

Key Points:

• Nirav Modi, an Indian jeweler known for his luxury diamond brand and celebrity clientele, was accused in 2018 of orchestrating a $2 billion bank fraud involving Punjab National Bank, India's second-largest public sector bank.
• Modi allegedly obtained fraudulent Letters of Undertaking (LoUs) from PNB officials without collateral, enabling him and associates to secure overseas credit lines used to fund his diamond empire, with the scam uncovered when a new bank official demanded cash collateral.
• Modi has denied the charges and has been fighting extradition from London since his 2019 arrest, citing mental health concerns; however, UK courts have dismissed his appeals, and India’s Foreign Ministry states his legal options are nearing their end.
• Modi's rise was marked by founding the Nirav Modi brand in 2010, expanding internationally with boutiques on Madison Avenue and in London, and gaining celebrity endorsements, symbolizing India's growing luxury market before his fall amid the scandal.
• The case has had significant repercussions for India’s diamond industry and banking sector, causing reputational damage and increased scrutiny, while Modi’s uncle and business partner Mehul Choksi faces similar charges and extradition battles.