UK Court Orders Nirav Modi to Pay Bank of India Over Rs 100 Crore in Loan Dispute

The London High Court has ruled in favour of the Bank of India in a long-running loan dispute, holding fugitive diamond trader Nirav Modi liable to pay more than $10.7 million (over Rs 100 crore at current exchange rates).

The judgment, delivered on [date if known, otherwise omit], concerns a loan extended by the state-owned lender to Firestar Diamond FZE, a Dubai-based company linked to Modi. The bank argued that Modi had personally guaranteed the loan and was therefore responsible for repayment.

Modi contested the claim in UK courts, even appearing in person earlier this year. However, the High Court concluded that the bank's claim was valid and enforceable. The ruling allows the Bank of India to pursue recovery through legal channels available in the United Kingdom.

This decision adds to a series of legal setbacks for Modi in Britain. In March, the London High Court rejected his attempt to reopen proceedings against his extradition to India, reaffirming earlier rulings that cleared the way for his return to face charges related to the Punjab National Bank (PNB) fraud case.

Nirav Modi is one of the key accused in the multi-billion-dollar PNB fraud case that shook India's banking sector in 2018. Indian investigative agencies have accused him of fraud, criminal conspiracy, and money laundering. He has been in custody in the UK since his arrest in London in March 2019, and multiple bail applications have been rejected.

The Bank of India's victory strengthens the ability of Indian lenders to recover funds through overseas courts. For Modi, the judgment adds another financial liability as he continues to face extradition and fraud proceedings.