Setback for Nirav Modi as UK court directs him to repay Rs 100 crore to Bank of India in loan recovery
The court order relates to a debt of more than USD 10.7 million. This amount includes about USD 4.1 million (around Rs 38.9 crore) in unpaid principal, along with interest claimed by the bank.
PTC News Desk: In a fresh legal setback for fugitive Nirav Modi in the UK, a London court has ordered him to pay more than USD 10.7 million (over Rs 100 crore) to Bank of India in a loan recovery dispute linked to a Dubai-based company promoted by him.
The London Circuit Commercial Court delivered the judgment on Tuesday ruling in favour of Bank of India and held that Modi, also prime accused in the Rs 13,000 crore PNB scam case, was personally liable for repayment under a personal guarantee he had executed for a loan extended to Firestar Diamond FZE, a Dubai-based entity of the Firestar Group.
The court further observed that Modi remained legally responsible for the debt after the borrowing company defaulted.
The court order relates to a debt of more than USD 10.7 million. This amount includes about USD 4.1 million (around Rs 38.9 crore) in unpaid principal, along with interest claimed by the bank.
Loan granted in 2012
The case stems from a loan provided by Bank of India in 2012, several years before the alleged Punjab National Bank (PNB) fraud came to light.
On August 3, 2012, Nirav Modi signed a personal guarantee in favour of the bank. Through this guarantee, he agreed to personally repay the loan if the borrowing company failed to do so.
According to the court, the financial condition of the Firestar Group worsened significantly after investigations into the alleged banking fraud began in early 2018, affecting the group's ability to meet its financial obligations.