Nirav Modi Faces Rs 100 Crore Setback In UK Court Order
Fugitive businessman Nirav Modi has faced a fresh legal setback after a UK court ordered him to repay more than $10.7 million, or over Rs 100 crore, to Bank of India in a loan recovery case.
The order was passed by the London Circuit Commercial Court and relates to a loan given to Firestar Diamond FZE, a Dubai-based company linked to the Firestar Group. The case is a separate loan recovery proceeding and is not part of Nirav Modi’s ongoing extradition case.
UK Court Rules In Bank Of India’s Favour
The London court ruled that Nirav Modi was personally liable under a guarantee he had signed for the loan extended to Firestar Diamond FZE.
The loan facility was sanctioned by the Bank of India in 2012. On August 3, 2012, Modi reportedly signed a personal guarantee, accepting responsibility to repay the dues if the borrower failed to meet its obligations.
After Firestar Diamond FZE defaulted, Bank of India initiated recovery proceedings against Modi under the personal guarantee agreement.
Repayment Amount Crosses $10.7 Million
According to the court findings, the total recoverable amount is more than $10.7 million. This includes around $4.1 million as the principal outstanding amount, along with interest claimed by the bank.
The court held that Modi remained legally responsible for the debt after the borrowing company failed to repay the loan.
Nirav Modi’s Defence Rejected
Nirav Modi’s legal team argued that the personal guarantee could not be enforced. They also claimed that Bank of India had not issued a valid repayment demand and did not have sufficient grounds to accelerate the loan recovery.
His lawyers further argued that Modi did not receive notices issued in April 2018 and October 2025 because he was outside India during the relevant period.
However, the court rejected these submissions and held that the notices had been properly served. The court also noted that the October 2025 demand notice had been sent to the UK prison where Modi is currently lodged.
Link To PNB Fraud Case
Nirav Modi is the prime accused in the Rs 13,000 crore Punjab National Bank fraud case. The CBI registered its first FIR in the case in February 2018.
Investigators later alleged that the fraud involved transactions amounting to nearly $2 billion. After the case surfaced, the financial condition of Modi-linked companies reportedly worsened.
Extradition Battle Continues
Nirav Modi remains in custody in the UK and continues to resist extradition to India. He is currently pursuing legal remedies before the European Court of Human Rights.
Indian agencies, including the CBI and Enforcement Directorate, are seeking his return in connection with the alleged Punjab National Bank fraud case.
The UK court’s latest order adds to Nirav Modi’s legal troubles and strengthens Bank of India’s efforts to recover dues linked to the Firestar Diamond FZE loan case.
