UK Court Orders Nirav Modi To Pay Over $10.7 Million In Bank Of India Loan Case

A London High Court has ruled in favour of Bank of India in a civil recovery case against fugitive diamantaire Nirav Modi, holding him personally liable to repay more than $10.7 million, equivalent to over Rs 100 crore.

The judgment was delivered on Tuesday by Judge Simon Tinkler at the London Circuit Commercial Court.

The court found that Nirav Modi was liable under a personal guarantee he had signed in connection with a loan extended by Bank of India to one of his companies.

The judge stated that Modi was responsible for the principal outstanding amount of $4.1 million, along with additional interest as calculated by the bank.

The court also noted that Modi had failed to provide any valid defence against the bank’s claim.

The loan in question was originally extended in July 2012 to Firestar Diamond FZE, a Dubai-based entity owned by Modi.

He subsequently signed a personal guarantee for the facility on August 3, 2013, making him personally responsible for repayment obligations.

The dispute escalated in early 2018 after allegations surfaced regarding a large-scale fraud involving Punjab National Bank (PNB), also linked to Modi.

Following these developments, Bank of India moved to recover its dues by recalling the loan. Formal demands issued to both Firestar Diamond and Nirav Modi in March and April 2018 went unanswered.

Interestingly, in a February 17, 2018 email, Modi himself had acknowledged the financial distress caused by the unfolding controversy.

He wrote that the media scrutiny had led to searches and seizures, severely impacting Firestar-related companies and effectively bringing them to a standstill, thereby affecting their ability to repay bank dues.

The court had already granted summary judgment in March 2024 in favour of Bank of India for the principal sum of $4.1 million plus interest.

A further demand was later issued in October 2025, strengthening the bank’s recovery efforts.

During the trial, Modi raised three main objections: that the personal guarantee was not enforceable, that he had not received valid repayment demands, and that no material adverse change had occurred to justify loan recall.

However, the court rejected all these arguments.

Judge Tinkler ruled that both the April 2018 and October 2025 demand notices had been properly delivered.

The court also observed that the October 2025 notice had been sent to HMP Thameside prison in London, where Modi is currently detained, and that Modi himself had earlier shared a copy of the 2018 demand with his legal representatives.

The judge further stated that from February 2018 onwards, it was reasonable to conclude that Firestar companies were significantly impacted by the PNB fraud allegations, weakening the value of Modi’s guarantees.

Nirav Modi, aged 49, has been in UK custody since his arrest in March 2019 in connection with the PNB scam involving fraudulent Letters of Undertaking used to secure overseas credit.

His extradition appeal was rejected in March 2026, paving the way for his return to India. The current ruling pertains separately to Bank of India’s civil recovery claim under his personal guarantee.

Published on: Wednesday, June 24, 2026, 11:25 AM IST