A British arms consultant at the centre of a bribery scandal over a helicopter deal in India was exchanged for a runaway Dubai princes in an extraordinary quid pro quo extradition, sources have told The Sunday Telegraph.

Christian Michel, 57, described as a “smooth” business dealer by detectives from the Central Bureau of Intelligence (CBI), was extradited from the United Arab Emirates last month to face police over a deal that has sent shockwaves across the political and military spheres of New Delhi.

He was handed over to India in an exchange for Princess Sheikha Latifa bint Mohammed al-Maktoum, daughter of Dubai’s ruler, who was intercepted by the India Navy during her attempt to flee the…