UK Court Orders Nirav Modi to Pay Bank of India Over $10.7 Million

Fugitive diamantaire Nirav Modi has suffered a major legal setback after a London court ordered him to pay more than USD 10.7 million (over ?100 crore) to Bank of India in connection with a loan extended to a Dubai-based company promoted by him. 

The London Circuit Commercial Court held that Modi was personally liable for the debt after providing a personal guarantee for a loan granted by Bank of India to a Dubai-based company of the Firestar Group.

In its judgment delivered on Tuesday, the court



ruled in favour of the bank and held that Modi was legally responsible for repaying the outstanding dues under the guarantee. According to the ruling, Modi's liability includes approximately USD 4.1 million (around Rs 38.9 crore) towards the principal outstanding amount, along with interest, taking the total liability to more than USD 10.7 million. 

The dispute relates to a loan facility extended by Bank of India to Firestar Diamond FZE in 2012, several years before the alleged Punjab National Bank fraud case came to light.