UBS Group AG is trying to foreclose on a 20.4 million-pound ($26.6 million) mortgage loan on former billionaire Vijay Mallya’s London house, reported Bloomberg. The bank might possess Mallya’s London home, which overlooks the capital’s Regent’s Park.
This should be noted that Vijay Mallya was using this property as his family home. The bank said, Rose Capital Ventures, the company that took out the mortgage, hasn’t repaid it. Currently, Mallya is fighting an extradition case.
Mallya hoped to turn the site — previously used as offices — into a “beautiful palatial property” that would be “very fancy,” UBS’ attorney Thomas Grant told a London court on Monday.
“At the end of the day we are simply saying you haven’t paid your mortgage loan, as per the term, therefore we seek a remedy given to us, which is a possession,” Grant said.
Rose is British Virgin Islands-based which is owned by a Mallya family trust, according to UBS’ London court filings.
Meanwhile, the appellate tribunal against money laundering on Wednesday directed Enforcement Directorate (ED) to maintain “status quo” with regard to the properties of fugitive liquor baron Vijay Mallya till November 26.
Justice Manmohan Singh, chairman of Appellate Tribunal on Prevention of Money Laundering Act, restrained Mallya from dealing with his movable and immovable properties and creating third party interests. “Till the next date of hearing, Vijay Mallya is restrained not to deal with and alter the status of the movable and immovable properties…and shall not create third party interest in any manner directly or indirectly till the next date,” the tribunal said.
“The respondent No 1 (ED) shall also maintain the status quo with regard to the properties, the details of which are mentioned in the impugned orders in both appeals till the next date,” it added.
The tribunal said that once the banks, which are secured creditors, have obtained the final decree from the court, they are bound to receive the default loan amount from Vijay Mallya and his companies.
“In view of settled law on the subject, I am of the opinion that the appellant bank is the rightful claimant who have already obtained a decree against the borrower from Debt Recovery Tribunal (DRT) under the SARFAESI Act and has a priority rights to recover the loans amount forthwith,” Justice Manmohan Singh said.