Setback to Mallya in London Property Case

By Little India Desk | November 22, 2018

Fugitive liquor baron Vijay Mallya has received a setback from a UK court in his quest to save his posh home in London which has been a matter of a legal battle with Swiss bank UBS.

According to a PTI report, on Nov.21, the UK court rejected the arguments relied on by Mallya’s lawyers. The court “ruled on the UBS’ application to strike out parts of the defense and found substantially in favor of the bank.”

Mumbai Mirror has reported that the court has also asked Mallya to pay £88,000 to UBS as part of interim legal costs in a case filed by the bank seeking possession of his London house.

UBS, which had given him mortgage loan of £20.4 million, had sought possession of Mallya’s lavish house situated at Cornwall Terrace, overlooking Regent’s Park in central London over the non-payment of this mortgage loan.

The court will hear this matter in May next year.

It was told to the court that the property is a “high-class home for Vijay Mallya and his family members and United Breweries Group corporate guests,” says the report.

The judge also said that he doesn’t see any basis to allow the defendants to amend their defense. He said that the case Mallya’s legal team has presented is not curable by simple amendments.

“The language of the contractual terms, in this case, could not be starker. The loan was made on an uncommitted basis and repayable on demand. UBS’ standard conditions were amended to remove the need for there to be a trigger even before it was entitled to call in the loan and UBS was entitled to call in the loan in its absolute discretion,” The Hindu quoted Chief Master Mash as saying in his judgment.

The mortgage was taken out by Mallya’s company Rose Capital Ventures. Mallya’s mother Lalitha and son Sidhartha are listed as occupancy right holders of the property.

“UBS is pleased with the decision. Given that proceedings are ongoing, it would be inappropriate to comment further,” UBS said in a statement.

Mallya has been mired in controversies over allegations that his Kingfisher Airlines defaulted on loans and interest in 2010 and owes Rs 9,000 crore to a consortium of 17 Indian banks. The Indian government is seeking his extradition after he fled to the United Kingdom in 2016.

A ruling in his extradition case is expected in a London court in December this year.