Fugitive diamantaire Nirav Modi and the prime accused in the PNB fraud case, has been denied bail by the UK Court. Modi was arrested in central London's Holborn area on Wednesday.
The court remanded Modi in custody till March 29, saying there are "substantial grounds" to believe that he would fail to surrender if granted bail.
Modi was produced before the Westminster Magistrates' Court on Wednesday, where he contested his extradition to India.
District Judge Marie Mallon, presiding over the hearing, said that she was not inclined to accept Modi's bail plea due the "high value amount" attached to the allegations against him and that he would have "every incentive" to evade surrendering before the court.
There are substantial grounds to believe that you would fail to surrender before the court if bail were to be granted," the judge noted.
The Crown Prosecution Service (CPS), representing the Indian authorities in court, told the court that Modi was wanted in India for fraud and money laundering amounting to the tune of USD 2 billion.
Under UK domestic law, the CPS said he is liable on charges of conspiracy to fraud, which has a maximum jail term of seven years, and conspiracy to conceal, which could result in anywhere between seven, 10 and life term in jail.
Modi's legal team was headed by Barrister George Hepburne-Scott and his solicitor, Anand Doobay, is the same legal expert hired by former Kingfisher Airlines boss Vijay Mallya in his extradition proceedings against India in the UK courts.
Modi's team made their case for bail, offering 500,000 pounds as security and an offer to adhere to stringent conditions.
The Westminster Magistrate Court had on Monday issued an arrest warrant against Modi in response to a request by India's Enforcement Directorate for his extradition.
The ED, early this month, had said that United Kingdom's home secretary Sajid Javid had referred India's request for extraditing Modi to a court for initiating legal proceedings against the diamantaire.
According to investigating agencies, Nirav Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB to the tune of Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs).
A British daily had recently published a report and video showing Modi walking in the streets of London and said the fugitive diamantaire was living in a swanky 8 million pounds apartment in the city's West End and that he was involved in a new diamond business.
The ED and the CBI are investigating Modi, his uncle Mehul Choksi and others for alleged money laundering and corruption to perpetrate the alleged scam in the Brady House branch of the PNB in Mumbai that was unearthed last year. Modi has been chargesheeted by both the agencies.
—With inputs from PTI
