Nirav Modi Ordered to Pay ₹100 Cr to Bank of India by UK Court! ⚖️
Nirav Modi Ordered to Pay ₹100 Cr to Bank of India by UK Court! ⚖️
Major setback for fugitive diamantaire Nirav Modi! A UK court has ordered him to repay over ₹100 crore to Bank of India in a loan recovery case. Get the full story on this significant legal development!
Fugitive diamantaire Nirav Modi has faced a fresh legal blow as a London court has ordered him to pay more than USD 10.7 million, equivalent to over ₹100 crore, to the Bank of India. This significant ruling directs Modi to repay outstanding dues under a personal guarantee he had provided for a loan.
The court's decision stems from a loan facility extended by the Bank of India in 2012 to Firestar Diamond FZE, a Dubai-based company promoted by Modi. At the time, Modi had personally guaranteed the repayment of the loan in the event of a default. The London Circuit Commercial Court held that Modi was indeed personally liable for the debt, rejecting his arguments that the personal guarantee was unenforceable and that the bank had failed to make a valid demand for repayment. The court also noted that a demand notice had been sent to his prison in 2025.
This development adds to Modi's legal woes. He has been incarcerated in a London prison since March 2019, following his arrest by Scotland Yard based on India’s extradition request. He stands accused of defrauding the Punjab National Bank of a much larger sum, ₹6,498 crore, a case that came to light years after the Firestar Diamond FZE loan. The financial position of the Firestar Group deteriorated significantly following the investigation into the alleged PNB fraud in 2019, leading the Bank of India to independently initiate recovery proceedings against Modi after Firestar Diamond FZE defaulted on its loan. Despite demand notices, no payment was made, prompting the bank to pursue legal action.
