An Italian businessman wanted in Italy to face charges of fraud and participation in organised crime this afternoon said he was contesting his extradition.

Stefano Detassis, the managing director of Delva Corporation Limited, an import and export company dealing in organic cereals, is wanted by the tribunal of Pesaro.

The court heard how he was placed under house arrest in Italy and defence counsel Lorna Mifsud Cachia said her client had informed the Italian and Maltese authorities that he was in Malta and was, therefore, not a fugitive.

Police Inspector Mario Cuschieri told Magistrate Antonio Micallef Trigona that the Maltese police had received a European Arrest Warrant for Mr Detassis issued in August last year. He was only localised yesterday in his apartment in Paceville and arrested immediately.

Dr Mifsud Cachia requested bail for her client.

But deputy Attorney General Donatella Frendo Dimech said house arrest did not exist in Malta as it did in Italy, adding that the Maltese law precluded the granting of bail to a person facing extradition proceedings.

Magistrate Micallef Trigona agreed and turned down the request.

Mr Detassis was remanded in custody.