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The London High Court delivered a decisive blow to Nirav Modi, the incarcerated diamond merchant, with a summary judgment on Friday, compelling him to settle a debt of $8 million to the Bank of India. The ruling is a significant step in the bank’s ongoing efforts to recoup losses from Modi’s Dubai-based enterprise, Firestar Diamond FZE. This legal development paves the way for the bank to initiate the recovery of funds and to liquidate Modi’s assets globally. Modi, who is currently serving time in Thameside prison in the UK, finds himself facing another setback as the court dismisses his defense as lacking substance.
Represented by barrister Tom Beasley, under the instruction of solicitor Milan Kapadia from Royds Withy King, the Bank of India presented a strong case against Modi. The court was convinced of the futility of a trial, given the clear absence of a viable defense from Modi’s side. The $8 million judgment accounts for both the principal and interest due on a credit facility previously extended to Modi by the bank. Despite the bank’s demand for repayment in 2018, Modi failed to fulfill his financial obligations, prompting the legal action.
The focus of the recovery efforts is on Firestar Diamond FZE, Modi’s company based in Dubai, which brings into play the enforceability of the UK court’s judgment in Dubai. Modi, who served as the CEO and guarantor for Firestar, had attempted to defend against the bank’s claim. However, the lack of response to the court’s application highlighted his precarious position. Judge Jonathan Klein emphasized that Modi had been afforded an opportunity to contest the bank’s claim, thereby justifying the summary judgment.
Following the judgment, the Bank of India expressed satisfaction and anticipation for the next phases of the recovery process. On a related note, Modi’s financial woes extend beyond the Bank of India case. He has also struggled to cover legal expenses from his unsuccessful extradition case, accruing over £150,000 in unpaid legal fees. Despite claiming a lack of access to funds due to the Indian government freezing his assets, Modi has proposed making monthly payments to clear his dues by borrowing from friends and relatives, indicating a continued legal and financial struggle ahead.
