VOI World/ Desk
Nirav Modi loan dispute took a fresh turn after a London High Court ruled in favour of Bank of India, holding that fugitive diamond trader Nirav Modi is liable under a personal guarantee linked to a loan provided to his Dubai-based company, Firestar Diamond FZE.
The judgment means Bank of India has succeeded in recovering more than $10.7 million, or over ₹100 crore, including interest. Judge Simon Tinkler rejected Nirav Modi’s argument that the guarantee was unenforceable and accepted that the bank had properly served notices seeking repayment.
According to court documents, Bank of India had extended credit facilities to Firestar Diamond FZE in 2012, while Nirav Modi signed a personal guarantee in 2013. Following revelations surrounding the Punjab National Bank fraud in early 2018, the bank moved to recall the loan and issued demand notices to both the company and Modi.
During the proceedings, Nirav Modi argued that he had not received valid demands and that there was no justification for terminating the loan. However, the court held that notices had been effectively served, including through his solicitors and while he was in custody in the UK.
The ruling strengthens Bank of India’s position in its efforts to recover dues linked to Nirav Modi’s business empire. Modi remains lodged in a London prison while continuing to fight extradition to India.
The Nirav Modi loan dispute judgment is another legal setback for the businessman, who has been at the centre of one of India’s biggest banking fraud cases.
