UK Court Rules in Favor of Bank of India
A UK court has ordered fugitive diamond merchant Nirav Modi to pay Bank of India over Rs 100 crore in a loan guarantee case. The ruling, delivered on June 24, 2026, by the Commercial Court in London, mandates Modi to fulfill his obligations under a personal guarantee provided for loans taken by his companies.
Details of the Judgment
The court directed Nirav Modi to pay Bank of India approximately £9.5 million (equivalent to over Rs 100 crore), along with interest and costs. The judgment stems from a personal guarantee that Modi had executed in favor of the bank for credit facilities extended to his firms, including Firestar Diamond International Private Limited and other entities.
According to court documents, Modi had guaranteed repayment of loans totaling around $12 million, which the bank claimed were defaulted. The bank initiated legal proceedings in the UK after Modi failed to honor the guarantee despite repeated demands.
Impact on Ongoing Legal Battles
This ruling adds to the mounting legal troubles for Nirav Modi, who is also fighting extradition to India in connection with the multi-billion dollar Punjab National Bank (PNB) fraud case. The UK court's decision is expected to strengthen the position of Indian banks seeking recovery of dues from the absconding businessman.
Bank of India's legal team welcomed the verdict, stating that it sends a strong message about the enforceability of guarantees in international jurisdictions. The bank is now expected to take steps to enforce the judgment against Modi's assets in the UK and other countries.
Nirav Modi, who has been in custody in the UK since his arrest in 2019, continues to deny all allegations. His legal representatives have indicated that they may appeal the court's decision.
