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London High Court orders Nirav Modi to pay $8 million to Bank of India


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The High Court in London recently issued a summary judgment against jailed diamantaire Nirav Modi, ordering him to pay $8 million to the Bank of India. A summary judgment is given when one party is absent from court or when the court determines that their case has no merit. In this case, the Bank of India had filed an application in the London High Court to recover $8 million from Modi’s Dubai-based company, Firestar Diamond FZE.

The judgment allows the bank to initiate the process of recovering the funds from the Dubai entity and to auction off Modi’s properties and assets worldwide. It’s important to note that Nirav Modi is currently being held in Thameside prison in the UK.

Background and Arguments

During the proceedings, Tom Beasley, the barrister representing the Bank of India, emphasized to the judge that Nirav Modi had no chance of success and that there was no need for the case to go to trial. The outstanding amount of $8 million is the result of a credit facility that the bank had extended to Nirav Modi. This amount includes $4 million in principal and an additional $4 million in interest.

Bank of India had provided credit worth $9 million to Modi’s Firestar Diamond FZE. However, when the bank requested repayment in 2018, Modi was unable to fulfill the commitment. As Firestar Diamond FZE is based in Dubai, a summary judgment from a UK court is more enforceable in that jurisdiction. Nirav Modi was not only the CEO of Firestar FZE but also the guarantor of the credit facility.

The court was informed that Nirav Modi had filed a defense to the claim, and his solicitors were served with a copy of the application but did not respond. Despite being in prison, Modi was given the opportunity to contest the claim brought by the Bank of India.

Next Steps and Unpaid Legal Costs

The Bank of India’s solicitor, Milan Kapadia, expressed satisfaction with the judgment and stated that they are looking forward to the next steps in the process.

In addition to the judgment related to the Bank of India case, it was revealed that Nirav Modi has yet to settle his legal bills for his failed extradition case. He has been appearing in Barkingside Magistrates’ Court in London for non-payment of over £150,000 in legal costs. Modi informed the magistrate that he currently has no access to any funds, as the Indian government has frozen all his assets. He also mentioned that he plans to make monthly payments towards the unpaid legal costs by borrowing money from friends and relatives.

Overall, the recent summary judgment in the London High Court has allowed the Bank of India to proceed with the recovery process against Nirav Modi’s Dubai-based company and potentially auction his properties and assets worldwide.

Nirav Modi Punjab National Bank Fraud

The Punjab National Bank (PNB) fraud case, also known as the Nirav Modi PNB fraud case, involves fraudulent letters of undertaking (LoUs) worth ₹12,000 crore (US$1.4 billion) issued by the PNB at its Brady House branch in Mumbai. The fraud was allegedly orchestrated by jeweler and designer Nirav Modi, along with his wife Ami Modi, brother Nishal Modi, uncle Mehul Choksi, PNB officials and employees, and directors of Modi and Choksi’s firms.

The scam came to light in early 2018, shortly after Nirav Modi and his family members had fled India. The fraudulent LoUs were used to secure credit from overseas branches of Indian banks. The PNB fraud case is considered one of the largest banking frauds in India’s history.

The case has had significant implications, leading to investigations, regulatory changes, and efforts to recover the defrauded funds. Nirav Modi has been arrested and is currently facing extradition proceedings in the United Kingdom.

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