UK court rules in favour of Swiss bank UBS, Mallya may lose his Central London house
London, Nov 22: A London Court has reportedly ruled in favour of Swiss bank UBS, which had sought repossession of Vijay Mallya's property at Cornwall Terrace, in central London, over the non-payment of a 20.4-million pounds mortgage loan.
In what is being seen as a major setback for Mallya, the UK High Court earlier rejected many of the arguments relied on by his legal team. The judicature has also issued an order asking Vijay Mallya to pay a hefty amount of 88,000 Pounds to UBS Investment Bank.
In his judgment following a two-day hearing last month, Judge Chief Master Marsh concluded that he can see no basis upon which the defendants should be given an opportunity to amend their defence, a PTI report said.
Fugitive businessman Vijay Mallya
The case relates to a mortgage taken out by Rose Capital Ventures, one of Mallya's companies, with the 62-year-old businessman, his mother Lalitha and son Sidhartha, listed as having the right of occupancy on the property.
While Mallya's team claims the bank had called in the loan ahead of an agreed period, the bank has claimed that it is within its rights to call in the mortgage for non-payment.
Mallya is the erstwhile owner of Kingfisher airlines
The application relating to the judgment this week was filed by the bank to strike out claims that any rights to remain in the property by the defendants take priority over the mortgage before a full trial in May 2019.
Meanwhile, Mallya remains on bail on an extradition warrant executed by Scotland Yard last year on fraud and money laundering charges brought by the Indian government, amounting to nearly Rs. 9,000 crore.
Mallya owns thousands of crores to Indian banks
A ruling in his extradition case is expected at Westminster Magistrates' Court in London next month.
The extradition trial, which opened at the London court on December 4 last year, is aimed at laying out a prima facie case of fraud against Mallya and establishing there are no bars to him being extradited to face Indian courts over the allegations relating to loans made out to his now-defunct Kingfisher Airlines.
The Bombay High Court
Meanwhile, the Bombay High Court on Thursday dismissed liquor baron Vijay Mallya's appeal for a stay on proceedings under Fugitive Economic Offenders Act.
Mallya had filed an application in the lower court seeking a stay on the hearing on the ED's plea till November 26 when the appellate tribunal functioning under the PMLA would hear matters filed by a consortium of banks seeking their dues back. The special court had on October 30 rejected Mallya's application, following which the liquor baron had approached the high court.
OneIndia News with PTI inputs