Swiss bank moves court to evict Vijay Mallya from mortgaged London mansion

Mangalore Today News Network

Mumbai, Oct 22, 2018 : Swiss Bank UBS AG has moved the UK High Court to evict ex-Kingfisher Airlines boss Vijay Mallya, his mother and son from their multi-million-pound mansion in London. The bank has appealed for possession of the mansion overlooking Regent’s Park on grounds that the mortgage has expired and not been repaid, according to a report by The Times of India. The court will now hear the matter on October 24.

 

UBS has made the claim in business and property court of the UK High Court against defendants Rose Capital Ventures Ltd, a British Virgin Islands-based company owned by a Mallya family trust, Vijay Mallya, his mother Lalitha Mallya and son Sidhartha Mallya, the report said. Rose Capital Ventures took out a five-year interest only mortgage from UBS on the mansion - 18 and 19 Cornwall Terrace - for 20.4 million pounds (Rs 195 crore) back in March 2012.

The shares in Rose Capital are owned by Gladco, which is owned by the Sileta trust, a Mallya family trust, according to information which UBS attributes to Vijay Mallya. His mother and son live in the mansion and are also the beneficiaries of this trust. Rose Capital had bought the property and incorporated in the British Virgin Islands on October 3, 20005 for 5.4 million pounds (Rs 52 crore), as per the TOI report. According to the title deeds, freehold rights to the property lies with Crown Estate, namely the Queen.

In its claim, UBS has stated that the defendants have refused to vacate the property despite the loan’s expiry and its requests in this regard. The Swiss bank wants the court to declare that the defendants, Mallya and his family members, are not entitled to enter or stay on the property.

UBS has also requested that Rose Capital pays the outstanding amount of the loan, which as on September 1, 2017, amounts to 20.718,236 (Rs 198 crore) as per the bank’s claims. In its claim, UBS said that it terminated the loan early on June 9, 2016, and since it was not repaid, the bank appointed two receivers who initiated proceedings against the four defendants and the housekeeper for the property’s possession in November 2016. The housekeeper vacated after a court order in June, 2017.