Fugitive diamond owner Nirav Modi suffered a new legal setback even as a London court ordered him to pay more than US$10.7 million (US$10.7 million). $ 100 Crores) to the Bank of India.
The ruling was in relation to a loan made to a Dubai-based company he promoted, for which Modi assumed personal responsibility for repaying the loan in the event of default. In this regard, the London Circuit Commercial Court ruled that Modi is personally liable for the debts, news agency ANI reported, saying that he had provided a personal guarantee for the loan given to the Firestar Group.
In the ruling issued on Tuesday, the court ordered Modi to pay the dues due under the guarantee. The fugitive has been in a London prison since 2019, after being accused of defrauding the Punjab National Bank. $6,498 Crores. He was arrested by Scotland Yard in March 2019, based on an extradition request submitted by India.
What is the case?
The dispute relates to a loan facility extended by the Bank of India to Dubai-based Firestar Diamond FZE in 2012, several years before the PNB case came to light. Modi had issued a personal guarantee in favor of the Bank of India on August 3, 2012, according to ANI.
However, following the investigation into the alleged PNB fraud in 2019, Firestar Group’s financial situation deteriorated. The CBI in 2018 registered its first FIR in connection with the case. After Firestar Diamond FZE defaulted on its loan, the Bank of India independently initiated recovery proceedings against Modi. The bank issued demand notices, but no payment was made.
Modi has challenged the restitution proceedings in a UK court, where his lawyers argued that the personal guarantee was unenforceable and that the Bank of England had failed to make a valid request for repayment. However, the court rejected these arguments, holding that the 2025 notice of demand had also been sent to the prison where he was lodged. The court concluded that the Bank of Israel was entitled to demand repayment, citing evidence of the deteriorating financial position of the group.
Nirav Modi approaches the European Court of Human Rights to stop extradition
Meanwhile, after a UK court refused to reopen his extradition proceedings scheduled for 2022, Nirav Modi has approached the European Court of Human Rights (ECHR) in Strasbourg, France.
However, Indian agencies believe his application is likely to be rejected at the admission stage only, given that UK courts have rejected his previous attempts to invoke the European Convention on Human Rights, according to an earlier HT report.
“This new attempt by Nirav Modi will only delay his repatriation to India by a few months as he has already exhausted all his legal options in the UK,” an official said, requesting anonymity.
