In a major setback to fugitive diamond merchant Nirav Modi, a UK court on Thursday ordered his extradition in connection with the Rs 13,500 crore Punjab National Bank (PNB) loan fraud case, after almost a two-year long legal battle.

The District Judge at the Westminster Magistrates’ Court, Samuel Goozee, accepted the prima facie evidence against Nirav Modi for money laundering, saying: “I am satisfied that Nirav Modi’s extradition to India is in compliance per human rights.

The District Judge also said that Nirav Modi has the right to appeal the order.

“There is no evidence that if extradited, Nirav Modi will not get justice,” the judge said.

Goozee also made it clear that he felt that the case for Nirav Modi to face trial in India was strong and that the diamantaire had clear links with “other connivers”, including bank officials, in faking ‘letters of undertaking’ (LoUs) that facilitated huge unpaid loans.

The Judge pointed out that Nirav Modi had personally written to the PNB acknowledging the debt and promising to repay it, while the CBI is investigating if Nirav Modi’s firms were dummy partners.

He also said that these companies were shadow companies operated by Nirav Modi.

“I do not accept that Nirav Modi was involved in legitimate business. I find no genuine transactions and believe there is a process of dishonesty,” the Judge added.

Expressing satisfaction over the detention condition and medical arrangements in India, the Judge said, “Conditions in Barack 12 (at the Arthur Road Jail in Mumbai) look far better than his current cell in London.”

The observations came after Nirav Modi’s side had argued that he can’t be extradited to India due to his worsening mental health during the Covid-19 pandemic and the poor conditions in the Indian prisons.

According to sources, the court ruling will now be sent to UK Home Secretary Priti Patel for a sign-off. Depending on the outcome, appeals may be made in the high court by either side.

The charges against the fugitive diamantaire centre around his firms Diamonds R Us, Stellar Diamonds and Solar Exports for making fraudulent use of a credit facility offered by the PNB, known as ‘letters of undertaking’ (LoUs).

Arguing on behalf of the Indian authorities, the Crown Prosecution Service (CPS) in the UK had earlier sought to establish that a number of PNB staff conspired with Modi to ensure the LoUs. The LoUs were issued to his companies without required credit checks, sans recording the issuance of the LoUs and without charging the required commission upon the transactions. This resulted in a fraud amounting to nearly $2 billion (Rs 13,500 crore).

Nirav Modi was arrested on an extradition warrant on March 19, 2019 on charges of money laundering, conspiring to destroy evidence and intimidating witnesses.

Nirav Modi is facing probe by the Central Bureau of Investigation (CBI) for a large-scale fraud upon PNB through fraudulently obtaining LoUs or loan agreements. He is also being probed by the Enforcement Directorate (ED) in a case relating to the laundering of the proceeds of that fraud.

Meanwhile, he also faces two additional charges of “causing disappearance of evidence” and “intimidating witnesses” or “criminal intimidation to cause death”, which were added on to the CBI case.

The ED has attached several assets of Nirav Modi running into crores of rupees in connection with the case.

Even Nirav Modi’s sister Purvi Modi, a Belgian national, and her husband Maiank Mehta have turned approvers in the loan fraud case. The ED in January this year had said that both became approvers for assisting the agency in the confiscation of two flats in New York, and one each in London and Mumbai, and the balance lying in two Swiss bank accounts and a bank account in Mumbai, totalling to Rs 579 crore.

In June last year, the ED had attached four bank accounts of Nirav Modi and Purvi, having a balance of Rs 283 crore, as part of its investigation into the case.

Even Nirav Modi’s uncle, Mehul Choksi of Geetanjali group who is believed believed to be in Antigua, is being probed in connection with the case.

Twelve luxury cars belonging to absconding diamantaires Nirav Modi and his uncle Mehul Choksi have been auctioned for Rs 3.29 crore, an ED statement said here on Friday.

The ED had last year attached the vehicles under the Prevention of Money Laundering Act (PMLA).

The vehicles were e-auctioned on Thursday through the Metal Scrap Trade Corporation Ltd following an order of the special PMLA Court last month.

Among the 13 vehicles put up for auction, 10 out of 11 vehicles belonging to Nirav Modi and his group companies were sold. Two vehicles owned by his uncle Choksi were also sold. The details of the one unsold vehicle have not been disclosed.

The government will earn revenues worth Rs 3,28,94,293 from the e-auction.

The vehicles put up for e-auction on Thursday yesterday included a silver Rolls Royce with a reserve price of Rs 1,33,00,000, a Porsche starting at Rs 54,60,000, a red Mercedes Benz starting at Rs 14,00,000, a white Mercedes Benz starting at Rs 37,80,000, and a BMW starting at Rs 9,80,000.

The list also included two Honda Brio cars, a Toyota Innova, a Honda CRV, a Toyota Fortuner, a Skoda Superb Elegance, a Toyota Corolla Altis and a Toyota Innova Crysta.

Of the 13 vehicles, the BMW and Toyota Innova Crysta belonged to Choksi while the rest were owned by Nirav Modi, his family and his group companies.

Nirav Modi and Choksi are accused in the Rs 13,000 crore fraud that involved companies owned by them raising finances against letters of undertaking issued by the Punjab National Bank (PNB). The duo fled the country before the scam came to light in 2018.

As part of the crackdown on them, the ED last month demolished Nirav Modi’s palatial beach bungalow in Alibaug in adjoining Raigad district and auctioned off his artworks fetching around Rs 59 crore, besides attaching their homes, showrooms, plants and other properties in different parts of India.

Choksi has acquired the citizenship of Antigua and Barbados while Nirav Modi was arrested in London recently. India has initiated extradition proceedings against both of them.

The Enforcement Directorate (ED) said on Monday it has attached foreign properties of fugitive diamond jeweller Nirav Modi worth Rs 637 crore, including two apartments in New Yorks Central Park, in its ongoing investigation into the Punjab National Bank (PNB) fraud case.

A senior ED official said the agency had been working in close coordination with other foreign agencies in order to identify and attach foreign properties of Nirav Modi in various locations.

The attached properties were in the form of jewellery, bank accounts and immovable properties. Among them are two apartments worth Rs 216 crore in New York’s popular Central Park, which are registered in the name of Nirav Modi, the agency said.

Meanwhile, a flat worth Rs 56.97 crore on Marylebone road in London has also been attached, of which the beneficial owner is Nirav Modi’s sister Purvi Modi, a Belgian national.

The agency also attached five bank accounts containing over Rs 278 crore, belonging to Nirav Modi, Purvi and others in the case.

The official said that it had brought diamond jewellery worth Rs 22.69 crore back to India from Hong Kong.

According to the ED, a stock of jewellery was exported to Hong Kong after a case was registered against Nirav Modi by the Central Bureau of Investigation (CBI) in January. This was kept in a vault of a private company in Hong Kong on behalf of Nirav Modi.

“The agency contacted the company and its London headquarters and after much persuasion and follow up, it successfully brought back the jewellery to India,” the official said.

He also said that the stock value of the jewellery was around Rs 85 crore and the jewellery was sent to Hong Kong by Firestar Group of Companies. On independent valuation, the value of jewellery came to Rs 22.69 crore.

The ED has also attached a flat in south Mumbai worth Rs 19.5 crore which was in sister Purvi’s name.

The official said the flat was purchased by Purvi in 2017 and the deed was signed by Nirav Nodi’s brother Neeshal, who is also a Belgian national and who held a power of attorney.

“But the consideration of the flat was paid by Purvi through her Barclays Bank account maintained in Singapore,” the official said.

Interpol has issued an Red Corner Notice against Nirav Modi, Neeshal, Purvi and his executive Subhash Parab.

On Monday, Interpol, at the request of the CBI and ED, issued a Red Corner Notice against Nirav Modi’s trusted official, Aditya Nanavati.

Nanavati used to head the operations of Firestar Diamond’s business in Hong Kong. It is learnt that he is also in Belgium.

Nirav Modi and his uncle Mehul Choksi of Gitanjali Group are under probe by both the CBI and ED. The ED had on May 24 and 26 filed charge-sheets against both. Non-bailable warrants have been issued against them.

Nirav Modi left India before the scam was reported to the CBI.