Multinational investment bank and financial services company UBS Group AG is seeking possession of Vijay Mallya's house in London after the businessman was unable to return a loan of $26.6 million loan taken from the bank.
Mallya, who is fighting extradition to India on charges of fraud and money laundering amounting to Rs 9,000 crore, used it as a family home. The loan on the property was taken by Rose Capital Ventures, which is based in the British Virgin Islands and owned by a Mallya family trust.
UBS' attorney Thomas Grant told a London court on Monday that Mallya hoped to turn the property – previously used as offices – into a "beautiful palatial property" that would be "very fancy".
Grant added that as Mallya hasn't paid the mortgage loan as per the term, the bank has the right to seek the remedy given to it, which is possession.
This is the latest in a serious of lawsuits he is fighting in UK and India as creditors pursue him for the return of $1.3 billion loans he took for his now defunct Kingfisher Airlines.
The 62-year-old Mallya was arrested in London in April last year and is fighting to block extradition to his home country.
The house is located in an area known for the most cherished addresses in London and is considered an oasis for wealthy, cultured people. The property overlooks the beautiful Regent Park with Mayfair just 10 minutes away, reports suggest.
Receivers appointed by UBS began proceeding to take over possession of the house in November 2016.
In their defence Mallya and Rose say UBS called the mortgage in early without giving an explanation for this, having previously assured them that the bank wouldn't be doing so and this resulted in Rose being unable to repay the loan.
On its part, the bank says it decided to terminate its relationship with Mallya and Rose in June 2016 after Mallya was identified as a wilful defaulter in media reports, adding that the five-year loan expired in March 2017. A full trial is scheduled to start in May 2019.