A Serbian fugitive convicted of war crimes in Croatia could escape justice because of a Home Office decision to grant him indefinite leave to remain in Britain.

A judge considering an application for the extradition of Milan Spanovic, 44, yesterday ordered civil servants to clarify why he was allowed to remain in London for 15 years, despite having been refused asylum.

District Judge Timothy Workman said he would be unable to order repatriation if Spanovic had indefinite protection under the 2003 Extradition Act. He adjourned the hearing at City of Westminster Magistrates Court until next month.

Spanovic is fighting extradition for his part in an attack on the village of Maja in the former Yugoslavia. He lives with his wife Danijela, 30, and three children in Carshalton, South London. He was sentenced in his absence to 20 years in jail in 1995. He was later granted leave to stay in Britain, despite an international arrest warrant.

The extradition hearing was told that his repatriation was wanted on five grounds. Adina Ezekiel, for the Croatian Government, said that Spanovic had been denied asylum but was later allowed by the Home Office to remain in Britain.

Julian Atlee, for Spanovic, claimed that the indefinite leave to remain was tantamount to asylum. The Home Office said: “If an individual is suspected of involvement in war crimes . . . they may be stripped of any immigration status or refused any other standing claim for status.”

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