London Court Orders Nirav Modi to Pay ₹100 Crore to Bank of India in Loan Recovery Case
A London court has directed fugitive diamond merchant Nirav Modi to pay over ₹100 crore (approximately USD 10.7 million) to the Bank of India in connection with a loan recovery case, according to reports from the news agency ANI.
The ruling was handed down by the London Circuit Commercial Court on Tuesday. The court held that Nirav Modi is personally liable for the debt because he provided a personal guarantee for a loan that the bank extended to Firestar Diamond FZE, a Dubai-based company promoted by him, in 2012.
The court's judgment stated that Modi was legally responsible for repaying the outstanding dues under the guarantee. The decision came in favor of the Bank of India, which had sought recovery of the loan amount from Modi based on his personal guarantee.
Nirav Modi, an Indian fugitive, has been in custody in the United Kingdom since 2019, facing extradition proceedings related to the Punjab National Bank fraud case. The current court order adds to his legal troubles, as it pertains to a separate loan default.
The Bank of India had granted the loan to Firestar Diamond FZE, a company linked to the Modi family. When the company defaulted on repayment, the bank invoked the personal guarantee provided by Nirav Modi. The London court confirmed that the guarantee was legally enforceable, making Modi personally liable for the debt.
This ruling underscores the enforceability of personal guarantees in international financial transactions. It also highlights the ongoing legal efforts by Indian banks to recover funds from entities and individuals involved in default cases.
The court's decision is a significant step for the Bank of India in its pursuit of recovery, though enforcement of the judgment may depend on other ongoing legal processes involving Modi's assets and extradition.
