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He added that Prime Minister Modi was making it possible for such "fraudsters" to loot and run away.

Nirav's life as a free businessman in London is set to create some tension between India and Britain, where another fugitive Indian tycoon, Vijay Mallya, is fighting an extradition attempt. Both extradition requests, by the Enforcement Directorate and Central Bureau of Investigation, are being "considered" by the United Kingdom government, Kumar said.

Sorry, no comment, he said as he walked across the road dressed in a 10,0000 Pound Ostrich hide jacket.

The Daily Telegraph tracked Modi down to three-bedroom £8 million apartment occupying half a floor within the luxury skyscraper called Centre Point off Tottenham Court Road, where rent is understood to be £17,000 a month.

Fugitive diamantaire Nirav Modi is accused of over Rs 13,000-crore PNB scam, along with his maternal uncle Mehul Choksi is wanted in India.

Modi and his uncle Mehul Choksi, who are wanted in India for loan default, fled the country in the first week of January past year after their companies were found cheating the state-run PNB of Rs 14,000 crore.

The Telegraph report further stated that Nirav Modi against whom a Red Corner Notice has been issued by the Interpol has been living in the city's West End area and has even started a new diamond business. Modi repeatedly answered "no comment" to questions put to him. Choksi is also absconding; he is reported to be living in Antigua and Barbuda.

The Indian authorities were informed of the development on Thursday, with officials here indicating that an arrest warrant against Modi may now be a matter of weeks, moving the extradition request to the next stage. Later, India asked Britain to extradite him after reports said he had entered that country.

On Friday, hours before details about Nirav's whereabouts and life in London emerged, authorities demolished his seaside bungalow in Alibaug through a controlled explosion. The business is close to his home and was incorporated last May. Modi has been able to operate online bank accounts in the United Kingdom, and is in touch with a wealth management company in West London. It is with the British government. "It is not clear why the British government has given him a national insurance number and yet has apparently failed to act on the Interpol red notice", The Telegraph report said.

The United Kingdom has responded to the Red Corner Notice issued by the agency against Nirav in June a year ago, he said.