The London High Court on Friday gave a big blow to jailed fugitive diamond trader Nirav Modi.
In one of its summary judgment, the court asked Nirav Modi to pay 8 million dollars (Rs 66 crore) to the Bank of India (BOI).
Let us tell you that summary judgment is where one of the parties is not present in the court or the court does not see any merit in their case. In such a situation, the court can give judgment without a full trial.
Bank of India had filed an application in the London High Court to recover $8 million from Modi’s Dubai-based company Firestar Diamond FZE.
Friday’s decision is being considered a big blow for Nirav Modi. The decision allows Bank of India to begin recovery proceedings from the Dubai-based company and auction Modi’s properties anywhere in the world. Nirav Modi is currently lodged in Thameside jail in Britain.
The judge admitted that Nirav’s case had no merit and he would not be able to win it. Therefore there is no need to hear the case.
This outstanding amount of Rs 66 crore is made from the credit facility given by the bank to Nirav Modi. Of this $8 million, $4 million is borrowed money and includes $4 million interest.
BOI had given a loan of $9 million to Nirav Modi’s Firestar, but when the bank asked for its money back in 2018, it could not repay.
Since Firearm Diamond FZE is based in Dubai, summary judgment from a UK court can be more easily enforced there. Modi was the chief executive officer and guarantor of Firestar FZE.