Fugitive diamond merchant Nirav Modi has suffered a significant setback after a London court ordered him to repay $10.7 million (around ₹100 crore) to the Bank of India. The ruling, issued on Tuesday, holds him liable under a personal guarantee linked to loans extended to his Dubai-based company.

Case Linked to Dubai Loan Deal

The dispute relates to loans provided by the Bank of India to Diamond FZE, a Dubai-based firm owned by Nirav Modi, in July 2012. In August 2013, Modi had personally guaranteed repayment of the loan.

The bank moved the London Circuit Commercial Court after the borrower defaulted on repayment obligations.

Nirav Modi’s Defense Rejected

During the proceedings, Nirav Modi argued that the personal guarantee was not enforceable and claimed he had not received a valid repayment demand from the bank. He also contended that there was no legal basis for enforcing the claim.

However, the court rejected these arguments.

Court Rules in Favour of Bank of India

Judge Simon Tinkler ruled that the Bank of India’s claim was valid and enforceable. The court held that Nirav Modi was personally liable for the outstanding principal amount of $4.1 million, along with applicable interest as calculated by the bank.

The judge noted that the defendant failed to present a sufficient legal defense against the claim, leading to the ruling in favor of the bank.

Extradition Battle Continues

Nirav Modi is currently lodged in a London jail after his arrest on March 19, 2019. He continues to contest extradition proceedings initiated by India.

The Indian government has repeatedly stated that it remains committed to bringing him back to face trial. The Ministry of External Affairs (MEA) has confirmed ongoing coordination with UK authorities regarding his extradition.

Earlier, the UK High Court rejected Modi’s plea to reopen his extradition case, citing the “quality of assurances” provided by Indian authorities. However, legal proceedings in the matter are still ongoing.