Nirav Modi, the jeweller facing multiple legal challenges, made a personal appearance at the London Circuit Commercial Court on Monday. This visit was part of his ongoing legal dispute with the Bank of India, which has lodged a claim exceeding Rs 100 crore against him. Until recently, Modi had represented himself in court but opted to engage barrister Vivek Kapoor from 39 Essex Chambers shortly before the hearing. Dressed in a black suit and a white open-neck shirt, he arrived approximately 90 minutes late in a prison van and sat in a dock reminiscent of the Victorian era, surrounded by metal bars.

Background of the Case

The case involves a loan that Bank of India extended to Nirav Modi’s company, Firestar Diamond FZE, located in Dubai. Initially sanctioned on July 2, 2012, for $5 million (around Rs 46 crore), the loan amount was subsequently increased to $15 million (approximately Rs 140 crore) in 2013. This sum was later adjusted to $12 million (about Rs 112 crore) in the year 2017. Modi provided a personal guarantee for this loan, which was dated August 3, 2013.

Allegations and Legal Developments

As the loan went unpaid following its termination in early 2018, coinciding with allegations of Modi’s involvement in fraud against Punjab National Bank, the Bank of India filed a claim against Firestar on May 9, 2018. Modi was added as a defendant to this case on October 22, 2018. On March 8, 2024, the court granted summary judgment against Firestar for $8.4 million (around Rs 78 crore), which remains unpaid. Additionally, two corporate guarantors linked to the case are currently in liquidation.

Demands and Legal Counterarguments

The Bank of India issued a letter of demand to Modi regarding the outstanding debt on October 2, 2025. The bank asserts that it had sent a similar demand on April 6, 2018; however, this claim has been contested by Kapoor. He stated that the earlier demand was never properly served to Modi and argued that the October demand is “time-barred” under applicable legal statutes. Kapoor further contends that the personal guarantee is flawed and that no “default event” had transpired when the loan was terminated.

Current Claim by the Bank

The Bank of India currently states that Nirav Modi is liable for more than $10.7 million (over Rs 100 crore), including interest accrued. In defense of his client, Kapoor has called for the dismissal of the bank’s case, characterizing its claims as “riddled with deficiencies and flaws.” He alleges that the bank is leveraging media reports of fraud allegations to divert attention from the shortcomings within its case.

Bank’s Response to the Allegations

Representing the Bank of India, Tom Beasley argued that the bank was well within its rights to terminate the loan agreement. He referenced allegations from January 2018 that claimed Nirav Modi owed Punjab National Bank over $2 billion, indicating this may have hindered his capacity to repay the Bank of India loan.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share