A British businessman will fight extradition to Germany where he is wanted over allegations he was involved in a £100 million VAT scam.

Peter Singh Virdee, 43, a philanthropist and Tory party donor who has been pictured with the Queen, was detained earlier this month under a European Arrest Warrant after arriving at Heathrow from Abu Dhabi.

Virdee, who according to his website is a patron of the NSPCC and the English National Opera, denies having ever been involved in any kind of fraud or carbon trading, about which the scam is said to be related.

The 43-year-old, who lives in Southwick Place near London's Hyde Park, gave his birth name of Hardeep Singh as he appeared at Westminster Magistrates' Court on Wednesday.

An extradition hearing was set down for March 31 and his bail, for which he had to pay a security of £150,000, was extended.

Virdee's legal representatives have said he intends to "defend himself fully" against the tax evasion allegations.

A spokesman from Carter-Ruck, the legal firm representing Virdee, said previously: "Our client categorically denies these allegations; he has never been involved in carbon trading let alone in any kind of fraud.

"While he is happy to co-operate with the authorities he intends to defend himself fully against these allegations and the attempts to extradite him to Germany."

Born in Birmingham, Virdee is a visiting professor at Manchester Metropolitan University and runs a £4 billion Mayfair property empire, as well as an international renewable energy company, PV Energy.

Photographs on his website show him meeting the Queen and the Duke of Edinburgh, footballer Steven Gerrard, sprinter Usain Bolt and pop star Rihanna.

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