Since fleeing India, Nirav Modi has faced extradition proceedings, asset seizures and multiple recovery actions by banks and enforcement agencies.
Fugitive diamond trader Nirav Modi has suffered another legal setback in the United Kingdom.
The London High Court has ruled in favour of Bank of India, holding Modi liable to pay more than $10.7 million — over Rs 100 crore at current exchange rates — in a long-running loan dispute linked to his business empire.
The judgment marks a significant victory for the state-owned lender as it continues efforts to recover dues from one of India’s most high-profile economic offenders.
What’s The Case About?
The dispute relates to a loan extended by Bank of India to Dubai-based Firestar Diamond FZE, a company linked to Nirav Modi. The bank argued that Modi had personally guaranteed the loan and was therefore responsible for repaying the outstanding amount.
Modi had contested the claim in the UK courts. In a rare move, he even appeared personally before the London court earlier this year to fight the case.
However, the High Court ultimately sided with Bank of India, concluding that the lender’s claim was valid and enforceable. The ruling means the bank can now pursue recovery of the money through legal channels available in the UK.
Another Setback In A Long Legal Battle
The verdict adds to a growing list of legal defeats for Nirav Modi in Britain.
In March this year, the London High Court rejected his attempt to reopen proceedings against his extradition to India. The court’s decision reinforced earlier rulings that cleared the way for his return to face charges in India.
Modi has remained in custody in the UK since his arrest in London in March 2019. Multiple bail applications have been rejected by British courts over the years.
The Shadow Of The PNB Scam
Nirav Modi is one of the key accused in the multi-billion-dollar Punjab National Bank fraud case that shook India’s banking sector 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. Authorities allege that the fraud involved thousands of crores of rupees and exploited banking guarantees issued by Punjab National Bank.
Since fleeing India, Modi has faced extradition proceedings, asset seizures and multiple recovery actions by banks and enforcement agencies. According to government disclosures, fugitive economic offenders collectively owe public sector banks more than Rs 58,000 crore, with recovery efforts continuing across jurisdictions.