UK Court Orders Nirav Modi to Pay Over $11 Million to Bank of India
A UK court has ruled that fugitive diamond merchant Nirav Modi must pay more than $11 million to the Bank of India, along with substantial interest. The judgment, delivered on 24 June 2026, marks a significant legal victory for the Indian public sector bank in its efforts to recover funds allegedly siphoned off in the Punjab National Bank (PNB) fraud case.
Details of the Ruling
The court ordered Modi to pay the principal amount of $11 million to the Bank of India. The judge also highlighted 'the interest on that sum for which Mr Modi is liable,' which is estimated to total approximately $11.5 million until March 2026, with further interest accruing after that date. The ruling underscores the UK judiciary's willingness to enforce financial claims against individuals facing extradition proceedings.
Background of the Case
Nirav Modi, a key accused in the $2 billion PNB fraud case, has been fighting extradition to India from the UK since his arrest in 2019. The Bank of India, one of the affected lenders, initiated civil proceedings in London to recover its losses. The bank argued that Modi had obtained loans and guarantees through fraudulent means, including forged letters of undertaking (LoUs).
Impact and Next Steps
This ruling strengthens the position of Indian banks in pursuing civil remedies against fugitives abroad. The Bank of India can now seek to enforce the judgment against Modi's assets in the UK and other jurisdictions. Meanwhile, Modi remains in UK custody as his extradition case continues. The Indian government has welcomed the decision, stating that it demonstrates the effectiveness of international legal cooperation in combating financial crimes.
