You are here: Home » PTI Stories » National » News
Business Standard

Mallya settles for more time to pay up for London home

Press Trust of India  |  London 

Embattled liquor tycoon has settled a legal dispute with Swiss to allow him time until April next year to pay off a for his central home.

The had sought possession of the 63-year-old businessman's plush Cornwall Terrace apartment over the non-payment of a 20.4-million pounds loan and a trial in the case was due last week.

However, according to a court consent order issued by of the of the on Monday, the trial has been vacated and the proceedings adjourned following a settlement.

"The Defendants [Mallya] should nonetheless be permitted to remain in occupation of the Property in order to allow, if possible, the Loan and Mortgage to be redeemed, but that, if redemption has not taken place by 30 April 2020 the Claimant [UBS] shall be immediately entitled to possession," reads Barker's order.

"The Defendants acknowledging and agreeing that the Claimant's agreement to permit the Defendants to remain in occupation of the Property until 30 April 2020 is intended to provide the Defendants with a final opportunity to redeem the Loan, it adds.

The prime property, which overlooks Regent's Park in London, has been referred to as the high class home for Dr and his family members and corporate guests during the court proceedings.

The case relates to a mortgage taken out by Rose Capital Ventures, one of Mallya's companies, with the former boss, his mother listed as co-defendants with right of occupancy of the property.

While Mallya's legal team had claimed that the had called in the loan ahead of an agreed period, the bank had insisted that it is within its rights to call in the mortgage for non-payment.

The court order issued this week goes in favour of the bank's stand as it acknowledges that has an immediate right to possession and stipulates that unless the mortgage has been redeemed by April 30 next year, Mallya and the co-defendants must immediately hand over possession of the apartment by 4.00 pm on that date. They are not permitted to make any further applications to "postpone or suspend the date for giving up possession".

Additionally, Mallya must also pay up interest of 820,333.64 pounds accrued until April 2019 and then any further amount accrued until May 1 next year. He is also liable to pay legal costs of 1,047,081.18 pounds and receivers' costs of 223,863.82 pounds.

The court order also forbids any further claims arising out of the bankruptcy proceedings currently instituted in the UK against Mallya by a consortium of Indian banks led by (SBI).

Meanwhile, Mallya remains on bail as he appeals against his extradition order to India, a hearing for which is scheduled in the on July 2. The former boss is wanted in to face charges of fraud and laundering amounting to Rs 9,000 crores.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 14 2019. 20:21 IST
RECOMMENDED FOR YOU