CBI arrests Nirav Modi associate Sandeep Mistry in Dubai

The Dubai‑based director of Modi’s Fancy Creations was flown back as the agency moves to lock down key players ahead of a special‑court hearing.

The Central Bureau of Investigation has taken Sandeep Mistry, a senior figure in Nirav Modi’s overseas network, from Dubai to Mumbai. Mistry, who ran Fancy Creations Ltd., was flown back on Thursday and will appear before a special court that is handling the massive Punjab National Bank fraud case.

Mistry’s arrival marks the latest move in a series of actions aimed at tightening the net around the accused. The Enforcement Directorate has already started proceedings to label him a fugitive economic offender, a step that would let authorities seize assets both in India and abroad. That filing, according to court documents, is part of a broader strategy to cripple the financial empire built around the jewellery magnate.

Prosecution officials allege that Mistry, together with Modi’s brother Nehal and a third suspect named Mihir Bhansali, used intimidation tactics on several “dummy” directors of companies linked to Modi in the UAE. They claim the trio forced those directors to abandon their posts and relocate to Cairo, warning them of possible arrest if they stayed. In an effort to erase any trail, the accused are also said to have smashed their mobile phones.

One of the displaced directors managed to return to India and gave a statement to CBI investigators. He recounted that a colleague who wanted to come back was threatened with death, a claim supported by recorded phone calls that the director handed over to the agency. Those recordings, according to the investigators, provide a rare glimpse into the coercive methods allegedly employed by the network.

The CBI has said it will seek custodial interrogation of Mistry once he is produced before the special court. Legal experts suggest that a custodial interview could unlock further leads, especially concerning the flow of funds that allegedly siphoned off billions from the state‑run bank.

While Nirav Modi remains in Dubai fighting extradition, his inner circle appears to be shrinking. The swift handover of Mistry to Indian authorities points to the pressure the government is placing on the wider conspiracy. Analysts note that each arrest narrows the pool of key players and sends a clear signal to other overseas operatives that returning to India could mean immediate detention.

The next step will be Mistry’s appearance before the court, where the prosecution hopes to secure his custody for a detailed interrogation. Observers will be watching closely for any statements that could link the financial misdeeds to other shell companies that have been flagged in recent raids.

If the interrogation yields substantive evidence, it could accelerate the recovery of assets that the Enforcement Directorate estimates to be in the hundreds of crores. Until then, the case remains a focal point for both law‑enforcement agencies and the media, each waiting for the next development in what has become one of the most high‑profile financial scandals in recent Indian history.