London, June 24: Fugitive diamond trader Nirav Modi suffered a setback in the London High Court after the court directed him to repay dues linked to a personal guarantee provided for a Bank of India loan facility.
The ruling came in a case filed by Bank of India over a loan extended to Firestar Diamond FZE, a Dubai based company associated with Nirav Modi.
Nirav Modi Faces Fresh Financial Blow in UK Court
According to the judgment delivered by Justice Simon Tinkler on June 23, Nirav Modi is liable under the personal guarantee and must repay the outstanding amount along with applicable interest.
The dispute relates to a loan facility of 10.7 million dollars sanctioned by Bank of India in July 2012. Nirav Modi had executed a personal guarantee in August 2013 in connection with the borrowing.
The court rejected arguments made by Nirav Modi challenging the validity of the guarantee and disputing the demand notices issued by the bank.
Bank of India had recalled the loan after developments linked to the Punjab National Bank fraud case emerged in early 2018.
According to the case record, demand notices issued in March and April 2018 and later communications were not acted upon.
The court observed that developments surrounding the PNB fraud case had significantly affected the operations of the Firestar Group and its ability to meet debt obligations.
Nirav Modi remains in custody in the United Kingdom following his arrest in March 2019 and continues legal proceedings against extradition to India in connection with fraud and money laundering cases.
The latest ruling adds to the legal and financial proceedings already underway against him while Indian agencies continue efforts related to extradition and recovery actions.
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