London High Court’s shock to Nirav Modi, verdict given in 14 year old case, this bank will have to pay Rs 100 crores

Nirav Modi Bank of India Case: A London court has given a big blow to India’s fugitive diamond trader Nirav Modi. The London High Court, while giving its verdict in favor of Bank of India in a case, has held Nirav Modi responsible for repaying the bank’s loan of $10.7 million i.e. more than Rs 100 crore. This is a big blow for Nirav, who was already on the run from Indian agencies.

On Tuesday, London Commercial Court Judge Simon Tinkler, while giving his verdict on the case, said that Nirav Modi had given personal guarantee for the loan taken from Bank of India and now he is legally responsible to repay this loan.

Nirav Modi owes crores of rupees

Judge Simon Tinkler said that Nirav owes about $4.1 million i.e. about Rs 38.9 crore as the principal amount. Apart from this, the interest amount will also be included in it as per the rules set by Bank of India. Which makes a total of 10.7 million dollars i.e. around Rs 100 crore.

Let us tell you that the matter is 14 years old. When in 2012, Bank of India gave loan to Nirav Modi’s Dubai based company Firestar Diamond FZE. For this loan, fugitive Nirav Modi had given a personal guarantee to the bank on August 3, 2013. On this basis, the bank says that if the company does not repay the loan, then Modi is personally responsible for repaying the amount.

Nirav Modi is absconding since 2018

Nirav Modi has been absconding from India since January 2018 after the alleged scam of thousands of crores of rupees related to Punjab National Bank came to light. Only after this scam came to light, Bank of India also started the process of taking back its loan. The bank sent notices to Nirav Modi and his company for payment in March and April 2018. According to the bank, Nirav Modi did not respond to the notice.

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After this the bank approached the court and requested to get its loan back. Nirav Modi had challenged the bank’s claim in the court. His lawyers argued that the personal guarantee given by the bank was not enforceable. Lawyers said that the bank did not make the demand properly.