Nirav Modi Suffers Fresh Blow As UK Court Orders To Pay Bank of India Over Rs 100 Crore

London: Fugitive diamond trader Nirav Modi has suffered a major setback from a United Kingdom court. The London High Court, ruling in favor of Bank of India, held Nirav Modi liable for repaying the bank's loan of $10.7 million, over Rs 100 crore at current exchange rates, in a long-running loan dispute linked to his business empire.

What did the court say?

London Circuit Commercial Court Judge Simon Tinkler, while delivering the verdict on Tuesday, stated that Nirav Modi had personally guaranteed the loan from Bank of India and is now legally responsible for repaying the amount.

The court ruled that Nirav Modi owes approximately $4.1 million, or approximately Rs 389 crore, as principal amount. Furthermore, interest will be added to this amount as per the rules set by the bank. 

"Mr Modi is liable under the personal guarantee to the bank for the principal amount due of $4.1 million. The interest calculated on the basis set out by the bank is to be added," the judge said. "Mr Modi has not provided any defence to explain why the bank was not entitled to that sum."

What did Nirav Modi say?

Nirav Modi challenged the bank's claim in court. His lawyers argued that the personal guarantee provided by the bank was unenforceable. They argued that the bank had not properly made the demand and that the grounds for terminating the loan were insufficient.

Nirav Modi also claimed that he did not receive the notices sent in April 2018 and October 2025 because he was not in India at the time. However, Judge Simon Tinkler rejected Nirav Modi's arguments, stating that the bank notices were properly delivered. 

What did the court say about notices?

The court noted that the October 2025 notice was also sent to the prison address where Nirav Modi was being held. Furthermore, the court acknowledged that in 2019, Nirav Modi provided a copy of the April 2018 notice to his lawyers, proving his knowledge of it.

In his ruling, the judge stated that it had become clear by February 2018 that the financial situation of Nirav Modi and the Firestar Group companies had been seriously affected. The court also cited an email from Nirav Modi in which he informed the bank that the media reports had affected the company's operations and that the companies were unable to pay their dues.

What did the London court say about loan?

The judge stated that in this situation, the bank had every right to demand the repayment of the loan, and that the value of Nirav Modi's guarantee was also affected. Nirav Modi is currently imprisoned in a London jail and is fighting a legal battle for extradition in connection with the cases against him in India.