The judgment stems from a legal battle between BOI and Modi’s Dubai-based company, Firestar Diamond FZE…reports Asian Lite News
The High Court in London has dealt a significant blow to jailed diamantaire Nirav Modi, issuing a summary judgment ordering him to pay $8 million to the Bank of India (BOI). A summary judgment is a ruling made when the court finds no merit in one party’s case or when one party fails to appear.
The judgment stems from a legal battle between BOI and Modi’s Dubai-based company, Firestar Diamond FZE. The bank had filed an application with the High Court in London to recover $8 million from the company, comprising $4 million in principal and another $4 million in accrued interest.
According to court documents, BOI had extended a $9 million credit facility to Firestar, but when the bank demanded repayment in 2018, Modi was unable to honour the commitment. As Firestar Diamond FZE is based in Dubai, the summary judgment from the UK court is expected to facilitate the recovery process and potentially lead to the auctioning of Modi’s properties and assets worldwide.
Tom Beasley, the barrister representing BOI, successfully argued that Modi had no prospect of success and that a trial was unnecessary. The court was informed that Modi had filed a defence but failed to respond to the bank’s application for a summary judgment.
Judge Jonathan Klein, presiding over the case, concluded that despite Modi’s incarceration, he was given the opportunity to fight the claim brought by BOI. “We are content with the judgment and look forward to the next steps,” said BOI solicitor Milan Kapadia.
The ruling is a significant development in the ongoing legal battles surrounding the disgraced diamantaire, who is currently serving a prison sentence in the UK. Modi is also dealing with challenges in settling his legal bills for his extradition case, which he lost, and has been appearing in court for non-payment of over £150,000 in legal costs.
As the legal proceedings continue, the High Court’s judgment marks a crucial step in BOI’s efforts to recover its funds and hold Modi accountable for his financial obligations.