Fugitive Indian billionaire jeweller in UK police custody

Fugitive billionaire jeweller Nirav Modi, wanted by Indian authorities over a $2 billion loan fraud at state-run Punjab National Bank (PNB) was remanded in custody ater appearing before a British court on Wednesday.

India asked Britain last August to extradite Modi, 48, whose diamonds have sparkled on famous Hollywood stars, ater he was accused of massive bank fraud, charges he denies.

The diamond magnate was arrested in the Holborn area of central London on Tuesday ater he went into a bank to open an account and a member of staff contacted police.

On Wednesday, he appeared at London’s Westminster Magistrates Court accused by India of two charges of conspiracy to commit fraud and conspiracy to conceal criminal property.

“Taking into account the extensive value of the amounts of these allegations, and the fact you access your means and the scope in this case .... there are substantial grounds to believe that you would fail to surrender before the court if bail were to be granted,” the judge Marie Mallon said.

Modi spoke only to confirm his name, age and address, and that he did not agree to being extradited. His lawyer, George Hepburne Scot, said his client would deny the charges which he believes are politically motivated.

Hepburne Scot said Modi had arrived in Britain last year before any allegations were made in India and he had lived here lawfully and paid tax.

Despite offering to put up £500,000 ($660,000) security, Modi was told he would not be given bail. He was remanded in custody until his next appearance at the same court on March 29.

Modi let the country before India’s biggest banking fraud came to light early last year.

The third generation of his family to go into the diamond trade, Modi is worth $1.73 billion, according to Forbes. He once owned 17 jewellery shops across the world, with branches in Asia, the US and Britain.

PNB, India’s second-largest state-run bank, said in 2018 that two jewellery groups headed by Modi and his uncle Mehul Choksi had defrauded it by raising credit from other Indian banks using fraudulent guarantees issued by rogue staff of the bank. Modi and Choksi have both denied wrongdoing.

Prior to his arrest, India’s main opposition Congress party had used the issue as a weapon to target the ruling Bharatiya Janata Party ahead of an April-may general election.

Prakash Javadekar, a minister in Indian Prime Minister Narendra Modi’s cabinet, said all the fugitives would have to come back and “return the looted money to the nation.”

In December, a British court agreed that another high-profile Indian businessman, aviation tycoon Vijay Mallya, could be extradited to his homeland to face fraud charges. Mallya is currently appealing the decision.

Separately, the Enforcement Directorate (ED), India’s main financial crime-fighting agency, said that a court on Wednesday issued a non-bailable warrant against Nirav Modi’s wife.

The court also allowed the ED to auction 11 vehicles belonging to Modi — including Rolls-royce, Porsche, Mercedes and Toyota models — and allowed income tax authorities to auction 68 paintings owned by him.

Police in India later raided the homes and offices of Modi and business partner Mehul Choksi, seizing nearly $800 million in jewels and gold. The men are thought to have let India before the alleged fraud was discovered.

Modi denies the allegations and has sought political asylum in the UK.

In a leter to PNB last year, Modi said he owed the institution about Rs50 billion ($775 million). The $1.8 billion figure cited by the bank resulted in a media frenzy that pressured authorities to quickly search and seize assets from two of his companies, Firestar International and Firestar Diamond International, Modi said.

The son of a diamond merchant, Modi built an international jewellery empire that stretched from India to New York and Hong Kong. Bollywood star Priyanka Chopra became the face of his eponymous brand and Hollywood actress Naomi Wats appeared with Modi at the opening of his first US boutique in 2015.

As recently as 2017, Forbes magazine estimated Modi’s wealth at $1.8 billion. But his empire began to crumble ater the fraud allegations, and he was removed from the publication’s billionaires list in 2018.

Last year, the international police organisation Interpol issued a “red notice” seeking Modi’s arrest worldwide. His arrest finally came ater Britain’s Daily Telegraph earlier this month said it had tracked him down to a luxury apartment in London’s Centre Point tower, a 34-storey building that promotes itself as a “landmark with unparalleled views.”

The issue of the jeweller has been creating problems for the present Bharatiya Janata Party-led government in the centre.

The Congress has been continuously pressing the government over the issue.