Nirav Modi ordered to pay ₹100 crore to Bank of India as UK court rules against fugitive businessman

Famous fugitive economic offender of India, Nirav Modi, was ordered by a court to pay $10.7 million (₹100 crore) to the Bank of India. The London Circuit Commercial Court deemed him personally liable for providing the debt, as he was the personal guarantor, in relation to a loan granted by the Bank of India to his Dubai-based company, Firestar Diamond FZE, in 2012.

“Mr Modi is liable under the personal guarantee to the bank for the principal amount due of $4.1 million (approximately ₹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,” said Judge Simon Tinkler.

Nirav Modi vs Bank of India

In February 2018, following the ₹13,000 crore fraud case with Punjab National Bank (PNB) fraud, Nirav Modi was declared a fugitive in India. He informed the Bank of India in an email that he would be unable to meet its financial obligations due to his frozen operations. In April 2018, the Bank of India terminated the loan arrangement and asked Modi to enforce the personal guarantee.

According to the court records, the financial position of the Firestar Group tanked following the PNB fraud. The bank said that no payment was made despite repeated demands. Modi's legal team argued that the personal guarantee could not be enforced because the bank failed to make a valid demand for repayment of the loan, and claimed that there was insufficient demand for repayment. He also argued that he did not receive notice from the bank in April 2018 and October 2025, as he was not present in India. The court rejected those claims, referring to the email sent by Modi, addressing the financial condition of Modi and the Firestar Group, following negative media coverage and stating that he would not be able to meet the liabilities. His legal representative also received a copy of the April 2018 notice in 2019, and the October 2025 notice was served to his HMP Thameside prison, where he was lodged at that moment. The court ruled in favour of the Bank and ordered him to pay $10.7 million.

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Why has Nirav Modi not been extradited to India?

Modi has exhausted almost all his legal appeal capacity in India. He was defeated in the plea against extradition in the UK High Court and the Supreme Court. His mental health and risk of suicide appeal was denied, and the court also rejected his claim that Indian prisons do not match the human rights standards. “We have been in touch with the UK side on the extradition request. We understand that legal proceedings in this particular matter are currently underway,” said MEA spokesperson Randhir Jaiswal. He is now pursuing legal remedies before the European Court of Human Rights in an effort to halt his extradition to India.