Nirav Modi to pay over ₹100 crore to BoI:London Court orders the fugitive diamond merchant in a loan recovery case

Fugitive diamantaire Nirav Modi, who has been lodged in a London prison since 2019, has suffered a major legal setback after the London Circuit Commercial Court ordered him to pay more than USD 10.7 million (over ₹100 crore) to Bank of India in connection with a loan extended to a Dubai-based company promoted by him, said news agency, ANI. The court held that Modi was personally liable for the debt after he provided a personal guarantee for a loan granted by Bank of India to a Dubai-based company of the Firestar Group. In its judgment delivered on Tuesday, the court ruled in favour of Bank of India and held that Modi was legally responsible for repaying the outstanding dues under the guarantee. The court said Modi’s liability includes approximately $4.1 million (around ₹38.9 crore) towards the principal outstanding amount, together with interest calculated in accordance with the bank’s claim, taking the total liability to more than USD 10.7 million. BoI’s loan fraud case not related to PNB The dispute relates to a loan facility extended by Bank of India to Firestar Diamond FZE in 2012, several years before the Punjab National Bank (PNB) fraud case came to light. According to court records, the financial position of the Firestar Group deteriorated significantly after investigations into the alleged banking fraud surfaced in early 2018. PNB loan fraud case amounts to ₹18,800 crore In February 2018, the Central Bureau of Investigation (CBI) had registered its first FIR in connection with the PNB fraud case. Investigating agencies later alleged that the fraud involved transactions worth nearly $2 billion or ₹18,800 crore. Modi continues to contest extradition proceedings initiated by India The London Court ruling represents another significant setback for Modi in the United Kingdom, where he continues to contest extradition proceedings initiated by India. In March this year, the UK High Court rejected his attempt to reopen his challenge against extradition, relying on assurances provided by the Government of India. Modi knocks doors of human rights court to halt India extradition Modi is presently pursuing legal remedies before the European Court of Human Rights in an effort to halt his extradition to India, where he is wanted by the CBI and the Enforcement Directorate in connection with the alleged multi-billion-dollar Punjab National Bank fraud case.