New Delhi: Fugitive diamond merchant Nirav Modi has suffered another legal defeat in Britain after a London court held him personally liable for more than $10.7 million in a protracted loan dispute.
The London High Court found in favour of state-owned Bank of India, ruling that Nirav Modi had personally guaranteed a loan to Dubai-based Firestar Diamond FZE and must pay the outstanding amount — more than Rs 100 crore. The decision lets the bank use UK legal channels to recover the debt, as reported by NDTV.
Background Of The Dispute
Bank of India had lent funds to Firestar Diamond FZE and later contended that Nirav Modi had given a personal guarantee for the facility. Modi challenged the claim in UK courts and notably appeared in person at a London hearing earlier this year to contest the bank’s case.
The High Court, however, accepted the bank’s arguments and found the guarantee enforceable, effectively upholding Bank of India’s right to recover the debt from Modi through British legal channels.
Yet Another Legal Blow For Nirav Modi
The ruling is another setback for Modi in the UK. In March, the London High Court rejected his attempt to reopen the extradition case, keeping the process on track. He has been in custody there since his arrest in London in March 2019, and UK courts have already denied him bail several times.
Link To The PNB Fraud Case
Modi is a central figure in the massive Punjab National Bank fraud uncovered in 2018 that rattled India’s banking system. India’s investigative agencies, including the Central Bureau of Investigation and the Enforcement Directorate, have accused him of offences such as fraud, criminal conspiracy and money laundering, alleging misuse of bank guarantees that resulted in losses running into thousands of crores.
Since fleeing India, Modi has faced extradition cases, asset seizures and recovery action from banks and enforcement agencies. Government data shows that fugitive economic offenders owe public sector banks more than Rs 58,000 crore, and efforts to recover the money are still continuing.
Significance Of The Ruling
For Bank of India, this is a big win and will help it recover money abroad. For Nirav Modi, it adds to his legal and financial troubles as he continues to face extradition and fraud cases linked to the PNB scam.
