LONDON

Fugitive Indian billionaire jeweler Nirav Modi has been arrested in London, according to the British police on Wednesday.

Nirav Modi, 48, was arrested on behalf of the Indian authorities in the Holborn area on Tuesday afternoon, the police said in a statement.

Modi fled India after being accused of defrauding $2 billion from a state-run Punjab National Bank, which is the biggest banking fraud in the country’s history.

An Interpol red notice was issued on the request of the Indian authorities in July for Modi's arrest, according to daily The Telegraph.

Modi, a diamond jeweler whose designs have been worn by Hollywood stars, will go on a trial at Westminster Magistrates' Court on Wednesday.

The Telegraph reported that diamond tycoon was living in a three-bedroom flat with a monthly rent of £17,000 ($22,500).

The daily also learnt that Modi was given a National Insurance number and he has been able to operate online bank accounts in the U.K. while wanted by Indian authorities.

*Writing by Gozde Bayar