Nirav Modi ordered to pay $10.7M to Bank of India
What's the story
A London court has ruled in favor of the Bank of India in a loan recovery case against Nirav Modi, holding the fugitive diamantaire liable to pay more than $10.7 million (over ₹100 crore) at current exchange rates. The ruling was delivered by Judge Simon Tinkler in the London Circuit Commercial Court on Tuesday. He said, "Mr. Modi is liable under the personal guarantee to the bank for the principal amount due of $4.1 million (approximately ₹38.9 crore)."
Legal battle
Judge rejected Modi's arguments
Modi, who is currently in a London jail fighting extradition to India, had argued that the guarantee was unenforceable and he never received valid demands from the bank. He also claimed no material adverse effect justified the loan being terminated. However, Judge Tinkler upheld Bank of India's claim as valid and enforceable despite these arguments.
Loan details
Loans given by Bank of India to Diamond FZE
The case involves loans given by Bank of India to Diamond FZE in Dubai, a company owned by Modi, in July 2012. He had signed a personal guarantee for the loan on August 3, 2013. In early 2018, when news of an alleged fraud at Punjab National Bank (PNB) by Modi broke out, Bank of India decided to recall the loan. But demands sent to Firestar Diamond FZE and Modi in March-April 2018 went unanswered.
Court proceedings
Demands sent to Firestar Diamond FZE and Modi went unanswered
On March 8, 2024, Bank of India obtained summary judgment for the principal sum of $4.1 million plus interest. The bank served another demand on Modi in October 2025. A significant question before the court was whether the alleged PNB fraud and its aftermath constituted a "material adverse effect" that allowed the bank to call in the loan. Justice Tinkler determined that the circumstances plainly warranted the lender's behavior.
Email revelation
Every company in Firestar Group likely materially, negatively affected
Judge Tinkler also noted an email from Modi to the bank on February 17, 2018, which said a media frenzy had led to immediate search and seizure of operations. "A media frenzy has led to immediate search...seizure of operations, which has in turn resulted in Firestar International Pvt Ltd and Firestar Diamond International Pvt Ltd effectively ceasing to be going concerns," Modi wrote. "This has thereby jeopardized our ability to discharge the dues of the group to the banks."
Extradition update
Modi's extradition to India underway
Modi, who was arrested on March 19, 2019, is still in a London jail fighting his extradition to India. In April, the Ministry of External Affairs (MEA) had reiterated India's commitment to his extradition. "We have been in touch with the UK side on the extradition request. We understand that legal proceedings in this particular matter are currently underway," MEA Spokesperson Randhir Jaiswal had said earlier.