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Last year, Nirav lost his legal battle in the highest UK court against being extradited to India in the estimated USD 2 billion Punjab National Bank (PNB) loan scam case. But his case is now said to be "statute barred", indicating further pending litigation which could be linked to a confidential asylum application.
British Security Minister Tom Tugendhat said that the UK will not allow its legal system to be used to protect those who have committed crimes.
The jeweller, who fled India in 2018 before details of his alleged involvement in large-scale fraud at the Punjab National Bank became public, has argued there is a high risk of suicide if he is extradited.
Nirav Modi, meanwhile, remains behind bars at Wandsworth Prison in London since his arrest on an extradition warrant in March 2019.
Nirav Modi and Mehul Chkosi are two prime accused in the multi-crore bank fraud case. They are facing a probe by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).