London court orders Nirav Modi to pay Bank of India over Rs 100 crore in loan dispute

Fugitive diamond trader Nirav Modi has suffered a fresh legal setback in the United Kingdom after the London High Court upheld a claim by Bank of India in a loan recovery case, holding him liable to pay more than Rs 100 crore.

NDTV reported that the court ruled in favour of the state-owned lender in a dispute relating to a loan extended to Dubai-based Firestar Diamond FZE, a company linked to Modi. Bank of India had argued that Modi personally guaranteed the loan and was therefore responsible for repaying the outstanding dues.

According to reports, the court held Modi liable for more than $10.7 million, equivalent to over Rs 100 crore at current exchange rates. The judgment enables the bank to pursue recovery of the amount through legal avenues available in the UK.

Modi had contested the claim before British courts and personally appeared during proceedings earlier this year. However, the High Court concluded that the bank's claim was valid and enforceable.

The ruling adds to a series of adverse legal decisions faced by Modi in Britain. Earlier this year, the High Court rejected his attempt to reopen proceedings related to his extradition to India, reaffirming previous decisions that cleared the way for his return to face criminal charges.

Modi has remained in custody in the UK since his arrest in London in March 2019. Multiple attempts to secure bail have been rejected by British courts.

He is one of the principal accused in the Punjab National Bank fraud case that surfaced in 2018. Indian investigative agencies, including the Central Bureau of Investigation and the Enforcement Directorate, have accused him of fraud, criminal conspiracy and money laundering in connection with the alleged scam.

Since leaving India, Modi has been the subject of extradition proceedings, asset attachment actions and recovery efforts by banks and enforcement agencies seeking to recover funds linked to the alleged fraud.

The latest ruling is expected to strengthen efforts by Indian lenders to recover dues from fugitive economic offenders through international legal channels.