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London, dt. 09 March 2024 Saturday

The London High Court on Friday dealt a major blow to jailed fugitive diamond merchant Nirav Modi. In one of its summary judgments, the court asked Nirav Modi to pay 8 million dollars (Rs 66 crore) to Bank of India (BOI). Summary judgment is where one of the parties does not appear in court or the court finds no merit in their case. Meanwhile, the court can give a judgment without a full trial.

Bank of India has filed an application in London High Court to recover $8 million from Nirav Modi's Dubai-based company Firestar Diamond FZE. The decision on Friday is being considered as a big blow for Nirav Modi. The decision allows the Bank of India to start recovery proceedings from the Dubai-based company and auction Nirav Modi's properties anywhere in the world. Nirav Modi is currently imprisoned in Britain's Thameside Jail.

The judge felt that Nirav's case had no merit and he could not win it. So there is no need to hear the case. This amount of 66 crores is from the credit facility that the bank gave to Nirav Modi. Of this 8 million US dollars, 4 million dollars are borrowed and include 4 million dollars in interest.

BOI gave a loan of $9 million to Nirav Modi's Firestar but when the bank asked for its money back in 2018, it failed to repay. As Firestar Diamond FJDE is located in Dubai. Therefore a summary judgment of a UK court can be more easily enforced there. Nirav Modi was the chief executive officer and guarantor of Firestar FJDE.