Nirav Modi suffers Rs 100 crore setback in UK court. Here's what happened

Fugitive diamond trader Nirav Modi faces a fresh financial blow after the London High Court upheld the Bank of India's claim in a loan dispute and held him liable to pay more than Rs 100 crore, NDTV reported on Wednesday.

The court held Modi liable to pay more than $10.7 million, or over Rs 100 crore at current exchange rates, marking a significant victory for the state-owned lender as it continues efforts to recover dues from one of India's most high-profile economic offenders.

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Loan dispute linked to Firestar Diamond

The case relates to a loan extended by the Bank of India to Dubai-based Firestar Diamond FZE, a company linked to Modi. The bank argued that Modi had personally guaranteed the loan and was therefore responsible for repaying the outstanding amount.

Modi challenged the claim in UK courts and even appeared personally before the London court earlier this year to contest the case.

However, the High Court ultimately sided with Bank of India, concluding that the lender's claim was valid and enforceable. The ruling allows the bank to pursue recovery of the money through legal mechanisms available in the UK.

Latest in a string of legal defeats

The judgment adds to a growing list of setbacks for Modi in Britain.

In March this year, the London High Court rejected his attempt to reopen proceedings against his extradition to India, reinforcing earlier decisions that cleared the way for his return to face charges in the country.

Modi has remained in custody in the UK since his arrest in London in March 2019. British courts have repeatedly rejected his bail applications.

Shadow of the PNB fraud case

Modi is among the key accused in the multi-billion-dollar Punjab National Bank (PNB) fraud case that came to light in 2018.

The Central Bureau of Investigation and the Enforcement Directorate have accused him of fraud, criminal conspiracy and money laundering. Investigators allege the scam involved thousands of crores of rupees and exploited banking guarantees issued by PNB.

Since leaving India, Modi has faced extradition proceedings, asset seizures and multiple recovery actions by banks and enforcement agencies.

According to government disclosures cited by NDTV, fugitive economic offenders collectively owe public sector banks more than Rs 58,000 crore, with recovery efforts continuing across multiple jurisdictions.