LONDON High Court has ordered fugitive Indian businessman, Nirav Modi, to repay a hefty sum of $8 million (£6.3m) to the Bank of India (BOI).
The ruling was issued early this month after Modi's Dubai-based firm, Firestar Diamond FZE, failed to repay the loan it had received from the bank, reports said.
The legal battle between the bank and Firestar Diamond had been ongoing, with the former seeking to recover £6.3m from the firm, consisting of £3.2m in principal loan amount and an equal amount in accrued interest.
The dispute started from a credit facility of £7m that the bank had extended to Firestar, which, the firm was unable to repay when demanded by the bank back in 2018.
This prompted the lender to take legal action, leading to the recent judgment in its favour. The court found no merit in Modi's defence or claims against repaying the loan, and it ordered him to fulfill his financial obligations.
According to reports, the summary judgment from the court is expected to facilitate the recovery process and potentially lead to the auctioning of Modi's properties and assets worldwide.
Tom Beasley, the lawyer represented the Bank of India, effectively argued that Modi's chances of success were slim, rendering a trial unnecessary. The court learned that while Modi had submitted a defence, he failed to reply to the bank's request for a summary judgment.
Judge Jonathan Klein, presiding over the case, concluded that despite Modi's imprisonment, he had the opportunity to contest the bank's claim.
Bank of India solicitor Milan Kapadia expressed satisfaction with the judgment and said that the lender is looking forward to the next legal steps.
This ruling marks a significant development in the ongoing legal saga surrounding the disgraced businessman, who is currently serving time in a UK prison.
Modi faces difficulties in paying his legal expenses for his failed extradition case and is being pursued in court for failing to settle over £150,000 in legal fees.
