Fugitive billionaire jeweler Nirav Modi, wanted by Indian authorities over a US$2 billion loan fraud at state-run Punjab National Bank (PNB) was remanded in custody after appearing before a British court Wednesday.
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India asked Britain last August to extradite Modi, 48, who was accused of massive bank fraud, charges he denies.
The diamond magnate was arrested in the Holborn area of central London Tuesday after 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 fraud and conspiracy to conceal criminal property.
He spoke only to confirm his name, age, and address, and that he did not agree to be extradited. His lawyer, George Hepburne Scott, said his client would deny the charges which he believes are politically motivated.
Despite offering to put up 500,000 pound (US$658,650) security, he was told he would not be given bail. District Judge Marie Mallon said there were substantial grounds to believe he might not surrender to bail and no conditions would satisfy her to grant his release.
He was remanded in custody until his next appearance at the same court on March 29.
PNB shares closed up 3 percent on the news of Modi's arrest.
Modi left the country before India's biggest banking fraud came to light early last year.
PNB, India’s second-largest state-run bank, said in 2018 that two jewelry groups headed by Modi and his uncle Mehul Choksi had defrauded it by raising credit from other Indian banks using fraudulent guarantees issued by the rogue staff of the bank. Modi and Choksi have both denied wrongdoing.
Prior to his arrest, India's main opposition Congress party had used it as a weapon to target the ruling far-right Bharatiya Janata Party ahead of an April-May general election.
He was also part of a CEO-meeting with far-right Indian Prime Minister Narendra Modi on Jan. 23 at the World Economic Forum in Davos, despite being charged with fraud.
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 a court 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.