UK Court Orders Nirav Modi To Repay Bank Of India ₹100 Crore

A London Circuit Commercial Court has mandated that fugitive diamond businessman Nirav Modi repay over ₹100 crore ($10.7 million) to the Bank of India. The judgment establishes Modi's personal liability regarding a loan granted in 2012 to Firestar Diamond FZE, a company he promoted. The court affirmed that Modi's signed personal guarantee makes him legally responsible for the outstanding debt, which includes both the principal amount and accrued interest.

The dispute originated from a 2012 credit facility that eventually soured following the broader collapse of the Firestar Group in 2018. This collapse occurred concurrently with the emergence of the major Punjab National Bank (PNB) fraud investigation, which authorities alleged involved transactions worth approximately $2 billion. Bank of India successfully argued that the personal guarantee remains binding, allowing them to pursue recovery in the United Kingdom despite Modi's status as a fugitive in the broader PNB fraud case.

The ruling represents a significant victory for Indian financial institutions seeking to recover assets from overseas jurisdictions. While this specific judgment pertains to a private loan dispute, it reinforces the legal liability of individuals involved in cross-border financial transactions. The bank is expected to utilize this court order to intensify efforts to attach assets and recover the funds owed. Observers are now watching to see if this judgment influences ongoing extradition proceedings or additional asset recovery efforts globally.