India’s most wanted man arrested after bank clerk’s tip-off
Jeweller accused of £1bn fraud recognised in London West End bank after Telegraph report
Robert Mendick, Mick Brown
Gareth Davies
INDIA’S most wanted man was arrested while trying to open a bank account, days after The Daily Telegraph tracked him down to an £8 million apartment in London’s West End.
Nirav Modi, 48, a diamond jeweller whose designs have been worn by Hollywood stars, was held by police after a bank clerk contacted Scotland Yard in the wake of publicity generated by The Telegraph investigation.
Mr Modi, who is accused of a £1billion bank fraud – the largest in Indian history – was denied bail at a court hearing yesterday and remanded in custody.
The Telegraph had traced the billionaire tycoon to a flat, occupying half a floor in the Centre Point tower, and to an office in nearby Soho Square.
Westminster magistrates’ court was told Mr Modi was being paid £20,000 a month as an employee of Diamond Holdings Limited, a business set up in May last year, after he fled India.
Mr Modi said only, “I don’t consent”, when asked whether he agreed to be extradited to India. His refusal is likely to spark an extradition battle that could take years.
The court heard that Sajid Javid, the Home Secretary, had approved India’s request to extradite Mr Modi on March 13, four days after The Telegraph had exposed his life of luxury on the run.
Then, on Tuesday afternoon, he walked into a branch of Metro bank and was subsequently apprehended.
George Hepburne Scott, his barrister, told the court that “having had his bank accounts frozen, [Mr Modi] went to open a bank account in his own name at Metro bank in central London.
“As result of the widespread publicity of the existence of the arrest warrant, a bank clerk contacted the Metropolitan Police and informed them they had a wanted man in the bank… the existence of the warrant showed up in the police system... and police felt, given the publicity in the case, they ought to execute that warrant.”
Following The Telegraph article, Mr Modi’s lawyers had negotiated with Scotland Yard that their client be arrested by appointment at a police station on March 25. The bank tip-off took Mr Modi and his legal team by surprise.
The court hearing confirmed The Telegraph claim that Mr Modi was given a national insurance number while on the run in Britain. It also emerged that he is paying council tax at the rented Centre Point flat and had even been offered the chance to register to vote. Rents on similar flats in the tower have been set at £17,000 a month.
His lawyer added: “He very strongly contests the allegations and will raise a number of comprehensive objections to extradition, including political motivation and human rights concerns.”
Jonathan Swain, prosecuting, said Mr Modi was wanted for conspiracy to defraud and conspiracy to conceal criminal property. The fraud is alleged to have cost the Punjab National Bank £1 billion.
Mr Swain said: “He is in this country deliberately evading justice and … is someone who has access to considerable means which would enable him, if released, to fail to surrender.”
Mr Modi arrived in the UK in January last year, a few weeks before he was accused of fraud by Indian authorities. His precise whereabouts were not known until tracked down by The Telegraph 10 days ago.
The court heard that police visited his flagship Nirav Modi jewellery boutique in Old Bond Street in September but the store had been shut down and officers were unable to locate him.
At the peak of his wealth, Forbes estimated that Mr Modi was worth £1.3billion, but assets have been seized by Indian authorities including at least one Rolls-royce and a Porsche, as well as jewellery, paintings and watches.
Mr Modi’s properties in India – including a seaside bungalow which was demolished this month because it didn’t have proper planning permission – as well as apartments in New York and London, worth £30million, have also been seized by India’s Enforcement Directorate.
He will next appear at Westminster magistrate’s court on March 29.
‘He will raise a number of objections to extradition, including political motivation and human rights concerns’