Nirav Modi, the fugitive diamond trader wanted by Indian authorities, has suffered another legal setback in the United Kingdom. The London High Court has ruled in favour of Bank of India, holding him liable under a personal guarantee and directing him to repay the outstanding loan amount along with interest. Following the ruling, Nirav Modi faces a financial liability exceeding Rs 100 crore.
The decision relates to a loan recovery dispute in which Bank of India initiated legal proceedings to recover dues from a loan extended to Nirav Modi’s company. The court held that the personal guarantee provided by Nirav Modi was valid and enforceable, making him personally responsible for repayment of the debt.
The case dates back to 2012, when Bank of India extended a loan to Firestar Diamond FZE, a Dubai-based company associated with Nirav Modi. In August 2013, Nirav Modi provided a personal guarantee for the loan, assuring the bank that he would be personally liable for repayment in the event of default.
After allegations linked to a major banking fraud in India emerged and Nirav Modi came under scrutiny, Bank of India began proceedings to recover the loan. The bank made multiple demands for repayment but did not receive a satisfactory response.
In his judgment, London High Court Judge Simon Tinkler said that the available documents and evidence clearly established that Nirav Modi had provided a personal guarantee for the loan and that the bank’s demands had been validly received.
The court rejected Nirav Modi’s argument that he had not received the demand letters sent by the bank. Judge Tinkler stated that the records and surrounding circumstances demonstrated that the notices had been received and that the guarantee could be enforced as a matter of law.
According to court documents, Nirav Modi owes approximately $4.1 million in principal outstanding debt. After the addition of applicable interest, the total liability could reach approximately $10.7 million, equivalent to more than Rs 100 crore in Indian currency.
Nirav Modi is one of the principal accused in one of India’s most widely discussed economic crime cases. He faces allegations of fraud and financial irregularities involving the Indian banking system. Indian investigative agencies have been pursuing his extradition for several years. He is also facing multiple legal challenges in the United Kingdom.
The latest ruling marks a further development in the legal proceedings against him and is expected to increase his financial obligations substantially.
