A wealthy businessman was kidnapped and his family ordered to pay a £1.5 million ransom demand, a court heard.

The gang swooped as the victim locked up his factory in Leicestershire.

The victim, who is in his 40s, was hit on the head, bundled into an Audi and forced to crouch in the car's footwell with a blanket over his head, the court heard

He was taken to Birmingham, where he was tied up and held captive for three days, it was claimed.

Three men are on trial accused of conspiracy to commit kidnap, false imprisonment and blackmail between December 2007 and February last year.

The accused – Atif Mahmood Malik, (32), of Dover House, Dover Street, Leicester, Dipak Chauhan, (38), of Hazel Drive, Braunstone Town, Leicester, and Rajinder Bhadri, (50), of Templeman Road, West London – deny the charges.

Gordon Aspden, prosecuting, said the businessman was ambushed at about 7.30pm on February 6 last year.

He said: "Four men got in the Audi, two in the front and two in the back with him. They had a handgun that was pointed at him."

He was shackled with plastic ties, and a gang member told him: "If you don't co-operate, we're going to kill you," according to Mr Aspden. He was also told he would be shot in the knees, the court heard.

The businessman's 4x4 vehicle was driven away by others and abandoned.

Mr Aspden said the kidnappers had a detailed knowledge of the man and even knew what cars his family drove.

He was taken to a flat in Sheldon Heath Road, East Birmingham, where he was tied up and continuously watched, even when he went to the toilet.

His head was covered to prevent him seeing his captors' faces, the court heard.

The man was briefly moved to a neighbouring flat before being taken to a high rise flat in Ladywood, Birmingham.

"He had no idea where he was going and thought he was being taken out to be shot," said Mr Aspden.

During the journey across Birmingham, a gang member referred to someone as "The Boss", indicating there was a hierarchy in the group, according to Mr Aspden.

The man's family was contacted and told to pay £1.5 million into a Dubai bank account, if they wanted to see him again.

Mr Aspden said: "They got the money together and were arranging for it to be transferred."

However, shortly before the money was sent the businessman was set free, the court heard. Mr Aspden said: "It may be they got cold feet or thought the money had already arrived in Dubai, or even fell out among themselves, we don't know."

The court was told that nine others, who played differing parts in the plot, had already admitted some, or all, of the same conspiracy offences and will be sentenced later.

Mr Aspden said there were others, who had not yet been caught, and the inquiry was still on-going.

He said the three accused did not carry out the kidnap but "delegated" to others.

He said: "They were motivated by pure greed. They were quite prepared to subject an innocent man and his family to a kidnap ordeal for financial gain."

The trial continues.