Nirav Modi Appears in London Court Over Rs 100 Crore Bank of India Claim
Fugitive diamond merchant Nirav Modi made a personal appearance at the London Circuit Commercial Court on Monday to fight a significant legal battle. The case involves a claim exceeding Rs 100 crore filed against him by the Bank of India. Modi, who had been representing himself until recently, secured barrister Vivek Kapoor of 39 Essex Chambers at the last minute to handle his defense.
Court Appearance and Legal Representation
Nirav Modi arrived at the court 90 minutes late, transported in a prison van. He was dressed in a black suit with a white open-neck shirt and was seated in a Victorian-era dock surrounded by metal bars. His legal team, led by Kapoor, is vigorously contesting the bank's allegations, describing the claim as "riddled with deficiencies and flaws."
Details of the Loan and Guarantee
The dispute centers on a loan originally granted by Bank of India to Modi's company, Firestar Diamond FZE in Dubai, on July 2, 2012. Initially set at $5 million (approximately Rs 46 crore), the loan amount was increased to $15 million (close to Rs 140 crore) in 2013 and later reduced to $12 million (around Rs 112 crore) in 2017. Nirav Modi provided a personal guarantee for this loan on August 3, 2013.
Timeline of Legal Actions
The loan was terminated in early 2018 after allegations of Modi's involvement in a $2 billion fraud against Punjab National Bank surfaced. Key events in the legal proceedings include:
- May 9, 2018: Bank of India filed a claim in the High Court against Firestar Diamond FZE.
- October 22, 2018: Nirav Modi was added as a party to the claim.
- March 8, 2024: The bank obtained a summary judgment against Firestar for $8.4 million (about Rs 78 crore), which remains unpaid.
- October 2, 2025: The bank issued a formal demand letter to Modi regarding the outstanding debt.
Arguments from Both Sides
Barrister Vivek Kapoor, representing Nirav Modi, has raised several critical points in defense:
- He disputes the bank's claim that a demand was served on April 6, 2018, arguing it was never received by Modi.
- Kapoor contends that the October 2025 demand is "time-barred" under applicable law.
- He asserts that the personal guarantee provided by Modi is defective and that no "default event" occurred at the time of loan termination.
- Kapoor accuses the bank of using media allegations of fraud as an "excuse to gloss over the flaws in the bank's case."
On the opposing side, Tom Beasley, representing Bank of India, argued that the bank had the right to terminate the loan. He cited the allegations from January 2018 that Modi owed over $2 billion to Punjab National Bank, which could adversely affect his ability to repay the Bank of India loan. The bank claims Modi now owes more than $10.7 million (over Rs 100 crore), including accrued interest.
Current Status and Implications
With the two corporate guarantors of the loan now in liquidation, the focus has shifted squarely onto Nirav Modi. The court proceedings are ongoing, with Kapoor pushing for the case to be dismissed entirely. This legal battle adds another layer to Modi's complex web of financial and legal troubles, highlighting the international reach of India's efforts to hold him accountable for alleged financial misconduct.
