London High Court Ruling on Nirav Modi and Bank of India Guarantee

A London High Court actually ruled for the Bank of India , which is a big deal given the whole fugitive diamond businessman Nirav Modi situation. They found him liable to pay more than $10.7 million that’s over Rs 100 crore under a personal guarantee tied to some loan linked to his companies.
Justice Simon Tinkler delivered that judgment on Tuesday in the London Circuit Commercial Court. He basically said Mr Modi is responsible for the principal amount due, which was $4.1 million, plus whatever interest the bank calculated. The court noted he didn't offer any real defense explaining why the bank shouldn't have that money.
Modi himself had argued a lot before this. While stuck in London contesting his extradition back to India, he pushed back hard, claiming the guarantee couldn't be enforced. He said he never got proper repayment demands from the bank and there wasn't any actual bad outcome forcing them to end the loan.
The whole mess started with a loan Bank of India gave out to Firestar Diamond FZE in Dubai way back in July 2012. Then, Modi put his personal guarantee on August 3, 2013.
Things got complicated after that. When the alleged Punjab National Bank fraud popped up in early 2018, the bank recalled the loan. They started sending repayment demands to both Firestar Diamond FZE and Modi back in March and April of that year. But according to the court, those demands just weren't answered.
Then there was this email Modi sent to the bank on February 17, 2018. It basically said a media frenzy caused operations to be seized, which meant Firestar International and Diamond International effectively stopped operating. This jeopardized their ability to pay the banks.
The court looked at that email. Justice Tinkler pointed out something important: from mid-February 2018 onwards, it made sense to guess that both the borrower and every company in the Firestar Group were likely suffering material negative effects because of the alleged fraud. The value of Modi’s guarantees… well, the judge said that was very likely substantially impaired.
Modi denied receiving those repayment notices sent in April 2018 and October 2025. He claimed he wasn't even in India when they were served. But the court disaGreed on that point. Justice Tinkler observed that both demands had been successfully delivered. The October notice went to HMP Thameside, where Modi was locked up. And a copy of the April 2018 notice? Modi himself gave that to his lawyers back in 2019.
Ultimately, the court upheld the personal guarantee. It said it was fully enforceable.
Written by Gree News Team — Senior Editorial Board
Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.
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