In a major setback for imprisoned diamond trader Nirav Modi, the High Court in London has directed him to pay $8 million to the Bank of India (BOI). The court issued a summary judgment, which occurs when one party's case lacks merit or when that party fails to appear.

The dispute arose between BOI and Modi's Dubai-based company, Firestar Diamond FZE. BOI sought to recover $8 million from the company, comprising $4 million in principal and $4 million in accrued interest.

Court records reveal that BOI provided a $9 million credit facility to Firestar. However, when the bank demanded repayment in 2018, Modi failed to comply. As Firestar Diamond FZE operates from Dubai, the UK court's summary judgment is expected to aid in the recovery process, possibly leading to the auctioning of Modi's global properties and assets.

Tom Beasley, representing BOI, successfully argued that Modi had no chance of success, rendering a trial unnecessary. The court learned that although Modi filed a defense, he did not respond to the bank's application for a summary judgment.

Judge Jonathan Klein, overseeing the case, noted that despite Modi's imprisonment, he had the opportunity to contest BOI's claim. BOI solicitor Milan Kapadia expressed satisfaction with the judgment, anticipating the next steps.

This ruling marks a significant development in the ongoing legal battles surrounding Modi, who is serving a prison sentence in the UK. Modi also faces challenges in settling his legal fees for his failed extradition case and has appeared in court for not paying over £150,000 in legal costs.

As legal proceedings continue, the High Court's decision represents a crucial milestone in BOI's endeavor to recoup its funds and hold Modi accountable for his financial obligations.

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