Nirav Modi Faces Another Setback as London Court Upholds $10.7 Million Claim

A London court has ordered fugitive diamond merchant Nirav Modi to pay $10.7 million to Bank of India , marking another setback for the businessman who is already facing extradition proceedings in the United Kingdom.

The ruling was delivered by Judge Simon Tinkler , who rejected Modi’s objections to the repayment claim and upheld the bank’s demand arising from a 2012 credit facility extended to a Dubai based firm linked to his business network. The court found no merit in his defence and ruled in favour of the lender.

The total amount includes about $4.1 million in principal along with accumulated interest, taking the overall liability to $10.7 million . A demand notice in the case was served to Modi at HMP Thameside prison in London , where he has been held since 2019 while contesting extradition to India.

The dispute forms part of a wider series of financial and legal cases connected to Modi’s global business operations. He is the main accused in the Punjab National Bank (PNB) fraud case , one of India’s biggest banking scams, where fraudulent Letters of Undertaking were allegedly used to obtain overseas credit, causing massive losses to Indian banks.

After the alleged fraud surfaced in 2018, Nirav Modi fled India and was later arrested in the United Kingdom on India’s extradition request. Since then, he has remained in custody as UK courts continue to hear arguments related to his extradition.

Alongside the criminal proceedings, Indian banks have also pursued civil recovery actions in foreign jurisdictions to recover dues linked to loans and transactions involving his companies. The latest judgment in favour of Bank of India adds to these efforts and increases financial pressure on Modi as multiple cases continue to move forward in parallel.