LONDON: A London high court judge ruled in Bank of India’s favour on Tuesday, holding that fugitive diamond businessman Nirav Modi does owe the public sector bank over $10.7 million (a little over Rs 100 crore).Simon Tinkler handed down judgment in the London circuit commercial court on Tuesday, saying: “Mr Modi is liable under the personal guarantee to the bank for the principal amount due of $4.1 million (approximately Rs 38.9 crore). The interest calculated on the basis set out by the bank is to be added. Mr Modi has not provided any defence to explain why the bank was not entitled to that sum.”Nirav, who remains in a London jail fighting extradition to India, had argued at trial that the guarantee was unenforceable, that he had never received valid demands from the bank, and no material adverse effect justified the loan being terminated.Bank of India had lent one of Nirav’s companies, Firestar Diamond FZE in Dubai, a sum of money in July 2012. Nirav entered into a personal guarantee for it on Aug 3, 2013.In early 2018, when news spread of an alleged fraud on Punjab National Bank committed by Nirav, Bank of India decided to call in the loan. Demands sent to Firestar and Nirav in March and April 2018 went unanswered.On March 8, 2024 Bank of India obtained summary judgment for the principle sum of $4.1 million plus interest. The bank served a further demand on Nirav in Oct 2025.“From mid-Feb 2018, it was reasonable to infer that the borrower and every company in the Firestar Group was likely to be materially and negatively affected” by the alleged PNB fraud and “the value of the guarantees provided by Mr Modi… was very likely substantially impaired,” Tinkler said. He pointed out how on Feb 17, 2018 Nirav had sent an email to the bank which said: “….a media frenzy has led to immediate search and seizure of operations, which has in turn resulted in Firestar International Pvt Ltd and Firestar Diamond International Pvt Ltd effectively ceasing to be going concerns. This has thereby jeopardised our ability to discharge the dues of the group to the banks.”Nirav at trial denied receiving the April 2018 and Oct 2025 demands, saying he was not in India at the time, but Tinkler said he was satisfied both had been delivered to him, not least because the Oct one was also sent to HMP Thameside, where he was living, and Nirav had provided a copy of the April 2018 one to his solicitors in 2019. Tinkler found the guarantee to be enforceable.
