Nirav Modi, the fugitive businessman wanted in India in connection with the Punjab National Bank fraud case, has suffered a fresh legal defeat in the United Kingdom after a London court ruled that he must repay more than USD 10.7 million to Bank of India in a loan recovery matter.

The order was passed by the London Circuit Commercial Court, which held Modi personally responsible for a debt linked to Firestar Diamond FZE, a Dubai-based company associated with the Firestar Group. The court found that Modi had signed a personal guarantee for the loan and remained liable after the company failed to repay the bank.

The amount awarded includes roughly USD 4.1 million as the outstanding principal, along with accumulated interest and related dues, pushing the total recoverable sum beyond USD 10.7 million.

The case stems from a credit facility granted by Bank of India in 2012, years before the alleged PNB fraud came to light. As part of the loan arrangement, Modi had executed a personal guarantee in August that year, agreeing to take individual responsibility if the borrower defaulted.

According to the court’s findings, the financial health of Firestar Group companies deteriorated sharply after investigations into the alleged banking scam surfaced in 2018. The first FIR in the Punjab National Bank fraud case was registered by the CBI in February that year, and investigators later alleged that the scam involved transactions worth nearly USD 2 billion.

After Firestar Diamond FZE defaulted on its repayment obligations, Bank of India launched independent recovery proceedings against Modi under the guarantee agreement. The bank said it had sent multiple notices demanding repayment but did not receive any money in response.

Modi challenged the bank’s claim before the UK court, arguing that the personal guarantee could not be enforced. His legal team contended that the repayment notices were not valid and that the bank did not have sufficient grounds to call in the loan early and seek immediate recovery.

His defence also claimed that he had not received notices issued in April 2018 and October 2025 because he was not in India during those periods.

The court, however, rejected these arguments. It held that the notices had been properly served and noted that the 2025 demand notice had also been sent to the UK prison where Modi is currently lodged. The judgment further stated that Modi’s lawyers had received a copy of the earlier 2018 notice in 2019, which established that he was aware of the bank’s repayment demand.

The court also referred to evidence showing that by early 2018, the financial condition of Modi and the Firestar Group had worsened significantly. In its observations, the court mentioned an email from Modi to the bank in which he acknowledged that negative media coverage had badly affected the group’s business and that the companies were no longer in a position to meet their liabilities.

Based on these findings, the court concluded that Bank of India was entitled to invoke the guarantee, demand immediate repayment and proceed with recovery against Modi.

The ruling adds to the mounting legal pressure on Modi, who remains in custody in the UK while continuing to resist extradition to India. Earlier this year, he also failed in his attempt to reopen his extradition challenge before the UK High Court after Indian authorities submitted assurances in the case.

He is currently pursuing legal options before the European Court of Human Rights in an effort to block his transfer to India, where he is wanted by the CBI and Enforcement Directorate in connection with the alleged multi-crore Punjab National Bank fraud.

The latest UK court decision is expected to strengthen Bank of India’s recovery efforts while further complicating Modi’s broader legal battle abroad.