LONDON: A British businessman known as “Batman” is facing extradition to Germany and a possible 15-year prison sentence for alleged fraud and evasion of €125m (£109m) in VAT.
According to details, Peter Singh Virdee was arrested at Heathrow airport on a European arrest warrant, the Metropolitan police confirmed. Prosecutors in Germany allege Virdee was one of the “central organizers” of a criminal enterprise to defraud the authorities of VAT on carbon credits under the EU Emissions Trading Scheme.
“Peter Singh Virdee, 43, a UK national, was arrested by officers from the Metropolitan Police Service’s Extradition Unit on Tuesday, 10 January at Heathrow Airport,” a Metropolitan Police spokesman said on Friday.
“He was arrested on a European Arrest Warrant on behalf of the authorities in Germany, where he is wanted in relation to tax evasion.”
Virdee appeared before Westminster Magistrate’s Court on Wednesday and was released on bail. According to unconfirmed German press reports, he was ordered to pay £150,000 in bail.
The German authorities have formally requested his extradition. Virdee is accused of operating a so-called “VAT carousel” scheme on EU carbon credits, under which traders export the credits from one member state to another in order to take advantage of EU VAT rules.
As exports, the sales are exempt from VAT, but the traders charge their customers VAT which they never declare to the authorities.
The scheme ran from 2008 to 2012. Prosecutors in the German city of Frankfurt have pursuing the case for several years, and another Briton, Mohsin Usmangani Salya, is wanted for his alleged role, but this is the first time Virdee has been named in connection with the case.
If found guilty, Virdee could face up to 15 years in prison, Alexander Badle, a spokesman for the Frankfurt public prosecutor’s office said.
“An international arrest warrant was issued against the accused on October 4,” Badle said. “After intensive investigation by the Federal Criminal Police, the suspect was finally arrested on January 10 in Terminal 4 of London Heathrow airport after arriving on a flight from Abu Dhabi.”
Under German law, prosecutors are not allowed to identify suspects by name.
Originally from Birmingham, Virdee is the founder of B&S Property, which claims to have more than £4bn in global assets. The company is registered at an address in Mayfair, along with Peter Virdee Foundation, which describes itself as a philanthropic organization.
The German prosecutors allege he has extensive contacts abroad, especially in India, Pakistan, Dubai (UAE), Antigua, and St. Kitts and Nevis.
