Nirav Modi: Fugitive Indian billionaire jeweller arrested in London

Diamond tycoon wanted over alleged involvement in $2bn banking fraud

Billionaire jeweller Nirav Modi has been arrested in London on behalf of the Indian authorities, British police said on Wednesday.

India had asked Britain in August to extradite Mr Modi, one of the main suspects charged over a $2bn (£1.5bn) loan fraud at state-run Punjab National Bank (PNB).

The Metropolitan Police said the 48-year-old was detained in the Holborn area of central London on Tuesday and held overnight in custody.

Mr Modi was ordered to be held without bail at the end of a Westminster Magistrates’ Court hearing on Wednesday.

District Judge Marie Mallon said there was a risk Mr Modi would not appear at future hearings because of his access to large sums of money that could help him evade the courts and his “keenness to do so”.

Mr Modi refused to submit to being extradited to India and his lawyer argued he had been living openly in London since June 2018.

Last year Interpol issued a “red notice” for Mr Modi’s arrest.

The Daily Telegraph reported that Mr Modi was arrested after its reporters tracked him down at a flat in London’s Centre Point tower.

In 2018, Punjab National Bank, India’s second-largest state-run bank, said two jewellery groups headed by Mr Modi and his uncle Mehul Choksi had defrauded it by raising credit from other Indian banks using illegal guarantees issued by rogue PNB staff.

Mr Modi and Mr Choksi, who have both denied wrongdoing, left India before the details of the fraud became public.

Earlier this month, Indian officials blew up Mr Modi’s $14m mansion, which they said was in contravention of several environmental laws.

More than 100 sticks of dynamite were used to destroy the 33,000sq-ft bungalow.