LONDON: A London High Court judge ruled in favor of the Bank of India on Tuesday, holding that fugitive diamond tycoon Nirav Modi owed the public sector bank more than $10.7 million (a little over Rs 100 crore).Simon Tinkler delivered a ruling 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 (about Rs 38.9 crore). The interest calculated will be credited on the basis specified by the bank. Mr Modi has not advanced any defense to explain why the bank is not entitled to this amount.”Nirav, who remains in a London prison fighting extradition to India, had argued during the trial that the guarantee was unenforceable, that he never received valid demands from the bank, and that no material adverse effect justified terminating the loan.The Bank of India had lent money to one of Nirav’s companies, Firestar Diamond FZE in Dubai, in July 2012. Nirav entered into a personal guarantee for it on August 3, 2013.In early 2018, when news spread of an alleged Punjab National Bank fraud committed by Nirav, the Bank of India decided to call for the loan. Requests sent to Firestar and Nirav in March and April 2018 went unanswered.On March 8, 2024, the Bank of India obtained summary judgment for principal amount of US$4.1 million plus interest.
The bank served an additional order for Nirav in October 2025.“As of mid-February 2018, it was reasonable to conclude that the borrower and each company in the Firestar Group were likely to be materially and adversely affected” by PNB’s alleged fraud and “the value of the collateral provided by Mr. Modi… was very likely to be significantly reduced,” Tinkler said. He recalled how on February 17, 2018, Nirav sent an email to the bank which said: “…a media frenzy led to an immediate search and seizure of operations, which in turn led to Firestar International Pvt Ltd and Firestar Diamond International Pvt Ltd effectively ceasing to continue in business.
This jeopardizes our ability to pay the group’s dues to the banks.During the trial Nirav denied receiving the April 2018 and October 2025 demands, saying he was not in India at the time, but Tinkler said he was satisfied they were handed to him, not least because the October demand was also sent to HMP Thameside, where he lived, and Nirav provided a copy of the April 2018 version to his lawyers in 2019. Tinkler found the guarantee enforceable.
