Repay Loan With Interest: Jailed Nirav Modi Asked to Pay USD $10,740,111.88 to Bank of India
- Jun 24
- 2 min read
London court orders Nirav Modi to repay over USD 10.7 million to Bank of India, rejecting challenges to liability.
By Pranjal Gupta
New Delhi, June 24: Troubles for Indian fugitive Nirav Modi increased on Tuesday when a court in London ordered him to pay more than USD 10.7 million (over Rs 100 crore) to Bank of India for failing to repay a loan taken for a Dubai-based company belonging to his Firestar Group. Modi had presented himself as the personal guarantor for the loan of USD 4,105,189.34 (roughly USD 4.1 million). He is currently lodged in a prison in the United Kingdom pending possible extradition to India.
Nirav Modi took the loan in August 2012, years before the Punjab National Bank (PNB) fraud case came to light and while he was still among India's most prominent diamond entrepreneurs. Under the terms of the guarantee, he undertook personal responsibility to repay the loan in the event of a default by the borrowing company.
During the proceedings, the London court held that Modi was personally liable for the debt after finding that he had voluntarily executed the personal guarantee backing the loan facility.
London Court Rejects Modi's Defence
Modi challenged the recovery proceedings by the BOI before the London court. His lawyers argued that the personal guarantee was unenforceable and claimed the bank had failed to make a valid demand for payment. They further contended that the bank lacked sufficient grounds to accelerate the loan and seek immediate repayment.
Modi also argued that he never 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, however, rejected those arguments and held that the notices had been properly served. It noted that the October 2025 demand notice had also been delivered to the prison in the United Kingdom where Modi is currently lodged.
The judgment further observed that Modi's legal representatives had been provided with a copy of the April 2018 notice in 2019, demonstrating that he was aware of the bank's demand.
