UK Court Orders Nirav Modi to Pay Bank of India Over $10.7 Million

The London Circuit Commercial Court held that Modi was personally liable for the debt after providing a personal guarantee for a loan granted by Bank of India to a Dubai-based company of the Firestar Group.

In its judgment delivered on Tuesday, the court ruled in favour of the bank and held that Modi was legally responsible for repaying the outstanding dues under the guarantee.

According to the ruling, Modi's liability includes approximately USD 4.1 million (around ₹38.9 crore) towards the principal outstanding amount, along with interest, taking the total liability to more than USD 10.7 million.

The dispute relates to a loan facility extended by Bank of India to Firestar Diamond FZE in 2012, several years before the alleged Punjab National Bank fraud case came to light.

On August 3, 2012, Modi executed a personal guarantee in favour of the bank, undertaking personal responsibility to repay the loan if the borrowing company defaulted.

Court records show that the financial position of the Firestar Group deteriorated significantly after investigations into the alleged banking fraud emerged in early 2018. In February 2018, the Central Bureau of Investigation (CBI) registered its first FIR in connection with the PNB fraud case, which investigating agencies later alleged involved transactions worth nearly USD 2 billion.

Following the default by Firestar Diamond FZE, Bank of India initiated independent recovery proceedings against Modi under the personal guarantee. The bank issued demand notices seeking repayment of the outstanding dues, but no payment was made despite repeated demands.

Modi challenged the recovery proceedings before the London court. His legal team argued that the personal guarantee was unenforceable, claimed that the bank had failed to make a valid demand for payment, and contended that there were insufficient grounds to accelerate the loan and seek immediate repayment.

He also argued that he had not received notices issued by the bank in April 2018 and October 2025 because he was not present in India at the relevant time.

The court rejected these arguments, holding that the notices had been properly served. It noted that the October 2025 demand notice had also been sent to the prison in the United Kingdom where Modi is currently lodged.

The court further observed that Modi's legal representatives had received a copy of the April 2018 notice in 2019, demonstrating that he was aware of the bank's demand.

In its findings, the court noted that by February 2018, the financial condition of Modi and the Firestar Group had been seriously affected. The judgment referred to an email sent by Modi to the bank in which he acknowledged that adverse media reports had severely impacted the group's business operations and that the companies were no longer able to meet their liabilities.

The court concluded that Bank of India was fully entitled to demand repayment of the loan, accelerate the facility and enforce the personal guarantee executed by Modi.

The ruling marks another significant setback for Modi in the United Kingdom, where he continues to contest extradition proceedings initiated by India. In March this year, the UK High Court rejected his attempt to reopen his challenge against extradition, relying on assurances provided by the Government of India.

Modi is currently pursuing legal remedies before the European Court of Human Rights in an effort to halt his extradition to India, where he is wanted by the CBI and the Enforcement Directorate in connection with the alleged multi-billion-dollar PNB fraud case.