In a recent pronouncement by the High Court in London, a succinct adjudication was delivered against the incarcerated tycoon Nirav Modi, directing him to remit a substantial sum of $8 million to the Bank of India.
A summary judgment, where one party is absent or the court discerns a lack of merit, was granted on Friday. The Bank of India had submitted an application in the London High Court, seeking the recovery of $8 million from Modi’s Dubai-based enterprise, Firestar Diamond FZE. The court’s decision empowers the bank to initiate the retrieval process from the Dubai entity, enabling the auctioning of Modi’s global properties and assets. Presently, Nirav Modi is confined to Thameside prison in the United Kingdom.
Tom Beasley, the legal representative for BOI, briefed the judge, emphasizing that Nirav Modi faced insurmountable odds and that a trial was unnecessary. The outstanding amount originates from a credit facility extended by the bank to Nirav Modi. The judgment of $8 million comprises $4 million in principal and an additional $4 million in interest.
BOI had extended credit amounting to $9 million to Nirav Modi’s Firestar. However, when the bank demanded repayment in 2018, he found himself unable to fulfill the obligation. Since Firestar Diamond FZE is headquartered in Dubai, a summary judgment from the UK court holds more enforceability there. Modi, who served as the CEO of Firestar FZE and acted as the guarantor, allegedly filed a defense but received no response from his solicitors, according to the court. Judge Jonathan Klein concluded that despite Modi’s incarceration, he had the opportunity to contest the claim brought forth by the Bank of India.
“We are content with the judgment and look forward to the next steps,” expressed BOI solicitor Milan Kapadia. Additionally, Modi has yet to settle his legal expenses from the extradition case he lost. Currently facing proceedings in Barkingside Magistrates’ court in London for non-payment exceeding £150,000 in legal costs, he informed the magistrate of his lack of access to funds due to the Indian government freezing his assets. Modi pledged to make monthly payments for the unsettled legal costs by borrowing funds from friends and relatives.
