Liquor baron Vijay Mallya stands a chance of losing out on his multi-million-pound London house as Swiss Bank UBS AG has applied for the possession of the property in the UK High Court. A report in Times of India suggests that the Bank is seeking to evict Mallya, his mother Lalitha Mallya and son Sidhartha Mallya on the grounds that the mortgage for the mansion stands expired and hasn’t been repaid yet.
The claims have been made against defendants Rose Capital Ventures Ltd, a British Virgin Islands-based company that’s owned by a Mallya family trust, Vijay Mallya, his mother and son, reports suggest. Rose Capital Ventures Ltd took out a five-year interest only mortgage of 20.4 million pounds from UBS for the mansion – 18 and 19 Cornwall Terrace in March 2012.
Gladco owns the shares in Rose Capital that is owned by the Silela trust, a Mallya family trust. Mallya’s mother and son are residing 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 2005 for 5.4 million pounds, as per the report. As per the deed documents, the freehold rights to the property belong to Crown Estate.
UBS has claimed that the defendants have refused to vacate the property despite the loan expiry. The Swiss bank wants the court to declare that the defendants are not entitled to remain on the property. UBS is seeking Rose Capital to pay the outstanding loan amount which as of Sept 1, 2017 amounts to Rs 198 crore. UBS stated that in June 2016, it had terminated the loan and since it wasn’t repaid, the bank appointed two receivers to initiate proceedings against the four defendants and the housekeeper for the property’s possession in November 2016.