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Modi fled India a year ago after being accused of having a central role in a Dollars 1.8-billion fraud involving Punjab National Bank (PNB), the country's second-largest public lender.

He was produced before the Westminster Magistrates' Court, where he contested his extradition to India. Calling the charges "politically motivated", the billionaire asked for £500,000 ($660,000) bail, but the court ordered him remanded in custody until his next hearing, on March 29.

He appeared at London's Westminster Magistrates Court on Wednesday, accused by India of two charges of conspiracy to fraud and conspiracy to hide criminal property.

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Opposition leaders on Wednesday called diamond merchant Nirav Modi's arrest mere symbolism ahead of the Lok Sabha elections.

February 15th, 2018: India's Enforcement Directorate registers a money laundering case against Nirav Modi and his associates under the Prevention of Money Laundering Act. His arrest finally came after 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-story building that promotes itself as a "landmark with unparalleled views".

An Indian diamond tycoon well known amongst Bollywood stars has been arrested in London over his alleged involvement in a $2 billion banking fraud scandal.

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However, the Crown Prosecution Service - making representations on behalf of India as it did with the Vijay Mallya extradition - objected to the request for bail, pointing to "substantial grounds" to believe that he would fail to surrender. A court subsequently issued a warrant for Modi's wife Ami, the ED said.

Amy is also an accused in the PNB scam case with Modi.

The court allowed auction of 68 paintings and 11 vehicles belonging to Nirav Modi, including Rolls Royce, Porsche, Mercedes and Toyota Fortuner.

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Both Modi and Choksi left India in January past year before the PNB scam came out in the public. Among those on Modi's legal team are Anand Doobay, a partner at Boutique Law LLP, who also represented Mallya. Modi has been chargesheeted by both the agencies. Nirav Modi's counsel George Hepburne said that the case has a political motivation and conditions of Indian jails are not good. If the order is confirmed even during the appeal, the final decision will still rest with Javid to send Modi to India.