New Delhi, June 24 -- A court in London on Tuesday ordered fugitive diamond businessman Nirav Modi to pay $10.7 million (around Rs.100 crore) to the Bank of India after finding him liable for loans that he was a guarantor. The case pertains to loans the Bank of India had provided to Diamond FZE in Dubai, a company owned by Nirav Modi in July 2012.

Nirav Modi, who entered into a personal guarantee for the loan in August 2013, argued in the London Circuit Commercial Court that it was not enforceable and that he had never received valid demands from the bank. During the trial, Nirav Modi also argued that no material adverse effect justified the loan being terminated.

On Tuesday, Judge Simon Tinkler held that Bank of India's claim was valid...