Union Bank files litigation against Nirav Modi in Hong Kong court, says Report

The Union Bank of India has sued fugitive billionaire jeweller Nirav Modi in a Hong Kong court, a media report said.

The Union Bank of India has sued fugitive billionaire jeweler Nirav Modi in a Hong Kong court, a media report said.

A report in the Hong Kong-based South China Morning Post said the Union Bank claimed in a writ filed at the High Court on Wednesday that the Mumbai-born businessman, wanted for a massive financial scam in India, guaranteed two loans made to Firestone Trading Private on October 21, 2011, and Firestar Diamond on November 15, 2011.

The bank is demanding that Nirav Modi - who owns a chain of jewelry shops from Hong Kong to New York and whose celebrity clients have included actresses Naomi Watts and Kate Winslet - pay more than $5.49 million plus interest after both firms allegedly defaulted on repayments.

Nirav Modi, 47, has been on the run since February after Indian authorities launched an investigation into his alleged involvement in a Rs 13,600 crore (US$1.8 billion) scam against the Punjab National Bank (PNB), the country's second-largest state-run lender.