A London Circuit Commercial Court has ordered fugitive diamond businessman Nirav Modi to pay more than USD 10.7 million (over Rs 100 crore) to Bank of India in a loan recovery case linked to a credit facility extended to a Dubai-based firm promoted by him.
The ruling, delivered on Tuesday, held that Modi was personally liable for the outstanding dues after he executed a personal guarantee in 2012 for a loan granted to Firestar Diamond FZE, a company under his business group.
According to the court judgment, the liability includes around USD 4.1 million towards the principal amount, along with accrued interest, taking the total dues to over USD 10.7 million.
The London Circuit Commercial Court ruled in favour of Bank of India, stating that Modi had accepted personal responsibility to repay the loan in the event of default by the borrower company.
The dispute dates back to August 3, 2012, when Nirav Modi signed a personal guarantee in favour of the Indian public sector bank, agreeing to cover repayment obligations if Firestar Diamond FZE failed to meet its commitments.
Also read: Nirav Modi’s brother Nehal Modi held in US for money laundering
Bank of India initiated independent recovery proceedings after the company defaulted, issuing demand notices seeking repayment of outstanding dues. The bank contended that despite multiple notices, no payments were made.
Modi challenged the proceedings before the London court, arguing that the personal guarantee was not enforceable and that the bank had not issued valid repayment demands. His legal team also claimed that he had not received certain notices and questioned the acceleration of the loan.
However, the court rejected these arguments, holding that the demand notices were properly served. It noted that one of the notices had been sent to the UK prison where Modi has been lodged since 2019, while another had been shared with his legal representatives.
The court further observed that Modi was aware of the bank’s claims and correspondence, including emails in which he acknowledged the adverse impact of media reports on his business operations.
The judgment concluded that Bank of India was entitled to enforce the personal guarantee and recover the dues, including accelerating repayment.
The ruling marks another legal setback for Nirav Modi, who is currently contesting extradition proceedings in the United Kingdom. He is wanted by India’s Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) in connection with the Punjab National Bank (PNB) fraud case involving alleged irregularities worth nearly USD 2 billion.
In March 2026, a UK court rejected his plea to reopen extradition challenges, while relying on assurances provided by the Indian government. Modi is also pursuing remedies before the European Court of Human Rights.
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