Fugitive diamantaire Nirav Modi has suffered a major legal setback after a London court ordered him to pay over USD 10.7 million (more than ₹100 crore) to the Bank of India in connection with a loan extended to a Dubai-based company linked to his Firestar Group.
The London Circuit Commercial Court ruled in favour of the bank, holding Modi personally liable for the outstanding dues after he had provided a personal guarantee for the loan. The court stated that his liability includes around USD 4.1 million (approximately ₹38.9 crore) in principal, along with interest, taking the total amount due to over USD 10.7 million.
The case relates to a 2012 loan facility provided by Bank of India to Firestar Diamond FZE, a Dubai-based entity under Modi’s business network. As part of the agreement, Modi had executed a personal guarantee on August 3, 2012, agreeing to repay the loan if the borrowing company defaulted.
The court noted that the financial condition of the Firestar Group worsened significantly following the emergence of investigations into the Punjab National Bank (PNB) fraud case in 2018, in which alleged transactions worth nearly USD 2 billion were later reported by investigating agencies.
After the default, Bank of India initiated independent recovery proceedings against Modi under the personal guarantee and issued multiple repayment notices. However, no payment was made despite repeated demands. Modi challenged the proceedings, arguing that the guarantee was unenforceable and that proper demand notices were not served.
His legal team also claimed he was not present in India when certain notices were issued in 2018 and 2025. However, the court rejected these arguments, stating that the notices were validly served, including one sent to the UK prison where Modi is currently held. The court also observed that his legal representatives had received earlier communications, indicating awareness of the bank’s claims.
In its findings, the court referenced an email from Modi acknowledging that adverse media reports had severely affected his group’s business operations and repayment capacity. It concluded that Bank of India was fully entitled to accelerate the loan and enforce the personal guarantee.
The ruling marks another significant legal blow for Modi in the UK, where he continues to contest extradition proceedings. Earlier this year, the UK High Court rejected his attempt to reopen his challenge against extradition, citing assurances from the Government of India.
Modi is currently pursuing further legal remedies before the European Court of Human Rights in an attempt to block his extradition to India, where he is wanted by the CBI and Enforcement Directorate in connection with the alleged multi-billion-dollar PNB fraud case.
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