British court orders Nirav Modi to pay ₹100 million to Bank of India | Today’s news
A court in London on Tuesday ordered fugitive diamond merchant Nirav Modi to pay $10.7 million (about ₹100 crore) to Bank of India after finding it liable for loans for which it was a guarantor. The case relates to loans extended by Bank of India to Dubai-based Diamond FZE, a company owned by Nirav Modi, in July 2012.
Nirav Modi vs Bank of India
Nirav Modi, who took out a personal guarantee for the loan in August 2013, argued at the London Circuit Commercial Court that it was not enforceable and that he never received valid demands from the bank. During the court proceedings, Nirav Modi also argued that there was no material adverse effect justifying the termination of the loan.
On Tuesday, Judge Simon Tinkler ruled that Bank of India’s claim was valid and enforceable. “Mr. Modi guarantees the bank’s personal guarantee for the principal amount due in the amount of USD 4.1 million (approx. ₹38.9 million crowns). To this must be added the interest calculated on the basis set by the bank. Mr. Modi has not provided any defense to explain why the bank was not entitled to this amount,” the judge said.
Extradition of Nirav Modi to India
Nirav Modi, who was arrested on March 19, 2019, is currently being held in a London jail, where he is also fighting to prevent extradition to India. In April, the Ministry of External Affairs (MEA) said India remained committed to extraditing Nirav Modi.
“We have been in touch with the British side regarding the extradition request. We understand that legal proceedings are currently underway on this particular matter. But let me tell you that the Indian government remains fully committed to ensuring that the refugees are brought back to India to face the law of the land,” MEA spokesperson Randhir Jaiswal said.
In March, the UK High Court rejected fugitive diamantaire Nirav Modi’s request to reopen his extradition case, citing the “quality of assurances” provided by the Indian government.
Nirav Modi’s request to reopen the appeal was based on the February 2025 judgment in the extradition case of defense consultant Sanjay Bhandari, in which the Supreme Court described the use of torture by Indian agencies to extract confessions as “common and endemic”.
In April, the European Court of Human Rights (ECtHR) in Strasbourg, France, granted him anonymity by removing his case from public scrutiny.
Punjab National Bank Scam
The 55-year-old jeweler, who was declared a fugitive in India, is accused of organizing ₹13,000 crore fraud in the Punjab National Bank in collaboration with his uncle Mehul Choksi who is incarcerated in a Belgian jail.
According to the CBI, only Nirav Modi siphoned off ₹6,498.20 crore out of the total embezzled amount. His extradition was originally ordered by the UK Home Secretary in 2021, but has been stuck in limbo ever since.
