Trouble seems to be mounting for liquor baron Vijay Mallya who not only had to give up six of his fancy cars but is also on the verge of losing his London mansion. The former Kingfisher boss is bound to get an eviction notice from the Union Bank of Switzerland (UBS) AG following his failure to pay back the loan on his London property worth Rs 52 crore in 2005.
Apart from Mallya, his mother Lalitha Mallya and son Siddhartha Mallya might also have to leave the Regent Park facing London home soon.
UBS AG has applied for possession of the property after citing the mortgage was not paid. The bank has filed the application at the UK high court and the hearing for the case is set for October 24.
According to the Times of India, the Swiss bank has filed the case against Rose Capital Ventures (RCV), Vijay Mallya, Siddhartha Mallya, and Lalitha Mallya.
The bank wants Rose Capital to pay the outstanding loan and the defendants' ownership of the property to be nullified which will not allow them to enter or remain on the property.
Rose Capital Ventures had bought the property in 2005 for Rs 52 crore and incorporated in the British Virgin Islands. However, in 2012, a mortgage was taken on the property for £20.4 million or Rs 195 crore which RCV has failed to repay.
UBS said that even though the mortgage expired in March 2017, the defendants had failed to repay the loan and have not vacated the property even after many notices by the claimants.
UBS had terminated the loan in June 2016. As of September 2017, Rose Capital Ventures owes £20,78,236 or Rs 198 crore to UBS.
The bank had also started appointing receivers to start the proceedings against the defendants and the housekeeper of the property, Times of India reports. The housekeeper vacated the property in June 2017.
UBS further claimed that Rose Capital attempted to finance the loan with the help of another Swiss Bank, Compagnie Bancaire Helvétique. However, that plan also fell through.