Team Blitz India
LONDON: Fugitive businessman of Indian origin, Nirav Modi, who is wanted by the Indian authorities in a $2 billion fraud investigation case of Punjab National Bank and who is living in London to evade arrest in India, faced a setback last week as the High Court in London issued a summary judgment, directing him to pay $8 million to the Bank of India (BOI).
A summary judgment is rendered when the court deems one party’s case lacking in merit or when the said party fails to appear.
The court decision arises from the legal dispute between BOI and Nirav Modi’s Dubai-based firm, Firestar Diamond FZE. BOI had initiated legal proceedings in the High Court of London, seeking to reclaim $8 million from the company — comprising $4 million in principal and an additional $4 million in accrued interest.
Court records reveal that BOI had provided a $9 million credit facility to Firestar. However, when the bank sought repayment in 2018, Nirav Modi was unable to fulfill the obligation. Given that Firestar Diamond FZE operates from Dubai, the summary judgment by the UK court is expected to streamline the recovery efforts, potentially resulting in the auctioning of Modi’s global properties and assets.
During the court proceedings, Tom Beasley, the barrister representing BOI, effectively contended that Nirav Modi had no chance of success, rendering a trial unnecessary.
It was revealed that while Modi had submitted a defence, he had neglected to respond to the bank’s application for a summary judgment. Judge Jonathan Klein, overseeing the case, determined that despite Nirav Modi’s imprisonment, he had been provided with the opportunity to contest the claim made by BOI. Bank solicitor Milan Kapadia expressed satisfaction with the judgment.
