London: A judge at the London High Court ruled in favour of the Bank of India on Tuesday. The court stated that fugitive diamond merchant Nirav Modi owes the public sector bank $10.7 million (slightly over ₹100 crore).
Delivering the verdict at the London Circuit Commercial Court on Tuesday, Judge Simon Tinkler said: “Mr Modi is liable to repay the bank a principal amount of $4.1 million (approximately ₹38.9 crore) under a personal guarantee. Interest, calculated on a basis determined by the bank, will also be added to this. Mr Modi did not present any defence to show why the bank was not entitled to that amount.”
Nirav Modi, who is fighting against his extradition to India while in a London prison, had argued during the hearing that the guarantee was unenforceable, that he never received a valid demand from the bank, and that there were no valid grounds to recall the loan.
Bank of India had lent funds to Firestar Diamond FZE
Bank of India had lent funds to Firestar Diamond FZE, one of Nirav’s companies based in Dubai, in July 2012. Nirav had provided a personal guarantee for this loan on August 3, 2013.
In early 2018, following reports of the alleged fraud committed by Nirav against Punjab National Bank, the Bank of India decided to recall the loan. Demands sent to Firestar and Nirav in March and April 2018 went unanswered. On March 8, 2024, Bank of India secured a summary judgment for the principal amount of $4.1 million plus interest.
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