A United Kingdom court on Monday ordered that a Force India yacht linked to former liquor baron Vijay Mallya be sold and its proceeds amounting to Euro 6 million be used to repay Qatar National Bank to enforce its mortgage on the vessel.
Justice Nigel Teare handed down a judgment in the Admiralty Division of the London High Court. It was claimed that Vijay Mallya’s son Siddharth was the ultimate beneficial owner of the yacht.
However, the bank decided to focus on the recovery of the loan rather than ownership.
Vijay Mallya was the personal guarantor to the loan that was supposed to be paid by 2015. The loan did receive a few extensions but when it was not paid, the yacht was “arrested for non-payment for crew wages” in January 2018.
“Security for the loan included a personal guarantee from Vijay Mallya, an individual closely connected with the borrower,” notes the judgment.
“The sum claimed in this action in rem is Euro 5 million plus interest and the costs of ‘collection’ which the claimant is entitled to recover,” it adds.
After the UK court’s order, arrangements to seek this yacht to recover the loans would now be enforced. The judgment notes that the “owner of the yacht,” defendant, in this case, chose not to appear in the earlier hearings.
In a separate case, SBI and consortium of banks are also pursuing a bankruptcy case over unpaid loans against Vijay Mallya’s Kingfisher Airline, now closed down.
The high court hearing on Vijay Mallya’s appeal against the Westminster extradition order is due to be heard on February 11.