London Court Rules Against Nirav Modi, Orders Personal Liability Of Over ₹100 Crore In Bank Of India Recovery Case
In a landmark win for Indian public sector banks, the London Circuit Commercial Court has ordered Nirav Modi to pay over $10.7 million (approx. ₹100 crore) to the Bank of India.
- Republic Business
- 2 min read
The legal noose is tightening around fugitive diamantaire Nirav Modi. In a decisive verdict delivered on Tuesday, the London Circuit Commercial Court ruled in favor of the Bank of India, holding Modi personally liable for outstanding dues totaling over $10.7 million, roughly ₹100 crore.
Presiding Judge Simon Tinkler dismissed Modi’s defense in the civil recovery suit, solidifying the bank's claim and setting a critical precedent for the recovery of public funds from assets held offshore.
The dispute stems from a 2012 loan facility extended by the Bank of India to Firestar Diamond FZE, a Dubai-based entity within Modi’s conglomerate. Modi had executed a personal guarantee for the facility in August 2013, a document that proved to be the centerpiece of the bank's recovery strategy.
- The court held Modi liable for the principal amount of $4.1 million, plus accrued interest, bringing the total recovery to over $10.7 million.
- Modi’s legal team argued that the guarantee was unenforceable and claimed that valid demand notices were never received. Judge Tinkler categorically rejected these arguments, confirming that notices were properly served—including one delivered to the very UK prison where Modi is currently held.
Asset Recovery
The court noted that by early 2018, as allegations of fraud at Punjab National Bank (PNB) surfaced, the financial health of the Firestar Group had been severely compromised. The judgment cited an email from Modi himself, acknowledging that a media frenzy had jeopardized his company's ability to discharge its debts.
Nirav Modi, who has been in UK custody since his arrest in 2019, continues to fight his extradition to India to face criminal charges in the PNB fraud case. While he pursues legal remedies before the European Court of Human Rights, this civil court defeat serves as a stark reminder that the financial pursuit of economic offenders continues, independent of ongoing criminal proceedings.
With this judgment, Bank of India has cleared a major hurdle, reinforcing the principle that while an offender may flee, their financial obligations remain firmly tethered to them by law.
Published By : Shourya Jha
Published On: 24 June 2026 at 10:50 IST