Nirav Modi in Trouble

The High Court in London has ruled in favor of Bank of India, instructing Nirav Modi to pay $8 million, enabling the bank to recover from his Dubai-based company.

During the proceedings, the court issued a summary judgment against Nirav Modi, incarcerated diamantaire, ordering him to settle the $8 million debt owed to Bank of India.

Bank of India had initiated legal action in the High Court of London seeking to recover $8 million from Modi's Dubai-based entity, Firestar Diamond FZE. The recent judgment empowers the bank to initiate the recovery process from the Dubai entity and pursue the auction of Modi's properties and assets worldwide. Currently, Nirav Modi is held at Thameside prison in the UK.

Representing Bank of India, barrister Tom Beasley, under the instruction of solicitor Milan Kapadia from Royds Withy King, emphasized to the judge that Nirav Modi had no viable case, warranting a summary judgment. The outstanding debt comprises $4 million in principal and an additional $4 million in interest, stemming from the credit facility extended by Bank of India to Firestar, Modi's company.

Firestar had received credit worth $9 million from Bank of India. However, when the bank demanded repayment in 2018, Modi failed to honor the commitment. Given Firestar Diamond FZE's base in Dubai, a summary judgment from the UK court holds significant enforceability.

Modi, who served as the chief executive officer of Firestar FZE and acted as a guarantor, had the opportunity to defend himself in court, although his legal team did not respond to the proceedings.

Bank of India's solicitor Milan Kapadia expressed satisfaction with the judgment and looks forward to the next legal steps. Meanwhile, Modi faces additional legal challenges, including unsettled legal bills from his extradition case and non-payment of over £150,000 in legal costs at Barkingside Magistrates’ court in London.

Modi cited asset freezes by the Indian government, pledging to make monthly payments towards his legal fees by borrowing from friends and relatives.

In Brief:

1. High Court in London issues summary judgment against Nirav Modi, directing him to pay $8 million to Bank of India.

2. Bank of India sought repayment from Modi's Dubai-based company, Firestar Diamond FZE, for a $9 million credit extension.

3. Modi, as CEO of Firestar FZE and guarantor, failed to honor the repayment demand from the bank in 2018.

4. Summary judgment from the UK court enables Bank of India to pursue recovery from Firestar Diamond FZE and auction Modi's assets globally.

5. Despite being incarcerated in the UK, Modi had the opportunity to defend himself in court, but his legal team did not respond to the proceedings.

6. Bank of India's legal representative expressed satisfaction with the judgment and looks forward to further legal steps.

7. Modi faces additional legal challenges, including unsettled legal bills from his extradition case and non-payment of over £150,000 in legal costs in London.

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Source: The Guardian