Full Breakdown
CBI Secures Deportation and Arrest of Sandeep Mistry in Punjab National Bank Fraud Probe
By Drooid · · How we work
Core Event: Deportation and Custody of Sandeep Mistry
The Central Bureau of Investigation (CBI) arrested Sandeep Mistry, a close associate of fugitive jeweller Nirav Modi, after his deportation from the United Arab Emirates. Mistry arrived in Mumbai at 11:55 pm on September 28, 2026 and was taken into custody by the CBI’s Bank Securities and Fraud Branch. He was produced before a Mumbai court on September 29, 2026, which ordered his remand to judicial custody until October 6. The CBI says Mistry is wanted for facilitating fictitious international trade transactions that formed part of the multi-billion-dollar Punjab National Bank (PNB) fraud case.
Background & Context
The PNB fraud, first reported in 2018, involved fraudulent Letters of Undertaking that diverted roughly $2 billion. Nirav Modi, his brother Nehal and uncle Mehul Choksi have been under investigation by the Enforcement Directorate and the CBI since then. Mistry, former director of Fancy Creations Ltd., a Hong Kong-based firm linked to Modi, is alleged to have acted as a “key link” between entities, using self-deleting platforms to conceal evidence and preparing forged import-export documents for diamonds, gold and pearl jewellery.
Timeline
- July 2026 – INTERPOL Red Notice issued at the CBI’s request.
- September 28, 2026 – Mistry deported from the UAE and lands in Mumbai.
- September 29, 2026 – CBI places Mistry under arrest; court remands him to judicial custody.
- October 6 – Scheduled end of judicial custody.
Data & Statistics
- Alleged fraud amount: INR6,498.20 crore (? $2 billion).
- CBI claims to have repatriated over 175 criminals from foreign jurisdictions in recent years.
Official Statements & Responses
The agency noted that the charge-sheet has been filed before the competent court and that the remand order will keep Mistry in custody until October 6.
Conflicting Reports & Gaps
Sources differ on the total loss attributed to the PNB fraud. *The Hindu* cites a loss of nearly INR6,498.20 crore, while *Moneycontrol* reports Rs 13,000 crore. Both figures are presented as allegations; independent verification is not provided. While the CBI highlights successful international cooperation, external assessments of the broader investigative process are absent.
Why It Matters
Mistry’s arrest underscores Indian authorities’ focus on dismantling the network behind the PNB fraud and demonstrates cross-border law-enforcement collaboration. The case remains central to ongoing proceedings against Nirav Modi and his associates, including parallel litigation in the United Kingdom over a separate Bank of India loan.