PNB Fraud Case: ED Clarifies Sandeep Mistry Is Neither Accused Nor Witness In Nirav Modi Money Laundering Case

Mumbai, November 3, 2026: The Enforcement Directorate (ED) on Tuesday clarified that Sandeep Mistry, one of the close executives of Nirav Modi, is neither being treated as an accused nor as a witness in the money laundering case linked to Modi.

Much before Mistry was extradited to India, the ED had moved an application before the special court seeking to declare him a Fugitive Economic Offender (FEO).

However, at the relevant time, the ED had claimed that although Mistry was shown as a wanted accused in the predicate offence registered by the CBI for the alleged fraud involving Punjab National Bank, he was a witness for the ED.

ED Seeks Correction In Court Application

The ED had stated in its application that "as per the filed Prosecution Complaints, Mistry has been arraigned as one of the witnesses in the case, based on his submission over email, in response to the summons."

Mistry had forwarded all the internal emails shared between him and other top executives after the registration of the case, which became key evidence for the ED in its case.

While this application was pending, Mistry was extradited to India from Dubai by the CBI. As he remains in custody, the ED continued to contest the application to declare Mistry an FEO. However, realising the conflict, the prosecution claimed that the averment describing Mistry as a witness was a mistake.

It hence sought to rectify its application and stated that Mistry had neither been arraigned as an accused nor as a witness in the prosecution complaints.

The court allowed the agency to rectify the application, observing that, "So, if this factual position is allowed to be rectified/amended, that would bring the proper facts on record. No prejudice would cause to the respondent-accused and he can contest the application on its own merits."

CBI Details Alleged Role In Dummy Companies

The CBI claimed that Mistry was a close associate of Modi and was managing and coordinating the operations of Modi's dummy companies in Dubai (UAE) and Hong Kong. He acted as a conduit between the Dubai and Hong Kong entities, supervising their day-to-day functioning and issuing instructions to their staff through clandestine communication systems.

Mistry coordinated the preparation of false import/export documents used to show fictitious trade in diamonds, gold and pearl jewellery between the Dubai and Hong Kong companies and the three accused Indian firms — Diamonds R US, Solar Exports and Stellar Diamonds.

CBI Alleges Evidence Destruction And Fund Diversion

The CBI has further claimed that, “he was allegedly involved, along with other accused persons, in destruction/removal of electronic devices and data pertaining to the Dubai-based dummy companies and in exercising influence over the dummy directors of such companies. Such conduct demonstrates the possibility of the accused interfering with the evidence.”

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Mistry was also alleged to have been involved in siphoning of funds from the accounts of dummy companies in the UAE in connivance with Mihir Bhansali, who is still absconding.

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