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Fugitive liquor businessman Vijay Mallya faces eviction from London house

High court judge Deputy Master Matthew Marsh concluded that there were no reasons for him to allow the Mallya family more time to repay a 20.4-million-pound (about Rs 185.4 crore) debt to UBS.

Fugitive liquor businessman Vijay Mallya faces eviction from London house gcw
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London, First Published Jan 19, 2022, 9:15 AM IST

In a major blow for fugitive economic offender Vijay Mallya, a UK court ordered him and his whole family to be evicted from their luxury London residence on Tuesday. Mallya and his family, including son Sidhartha and mother Lalitha, will be expelled from the lavish residence. According to reports, the Swiss bank UBS would take ownership of the troubled businessman's premium property Cornwall Terrace flat in London, which overlooks Regent's Park. High court judge Deputy Master Matthew Marsh concluded that there were no reasons for him to allow the Mallya family more time to repay a 20.4-million-pound (about Rs 185.4 crore) debt to UBS.

According to news agency PTI, which reported the judge's verdict, the Swiss bank's stance was reasonable, and additional time is unlikely to make a significant impact. More crucially, the court denied permission to appeal his ruling or issue a temporary stay of execution. The decision means that UBS may proceed with the possession proceedings to recover its debt.

Rose Capital Ventures, based in the British Virgin Islands and held by a Mallya family trust, mortgaged the London property to UBS in 2012 as collateral for a 20.4 million pound five-year loan. The loan terminated in 2017, and the outstanding dues on that date were not paid.

Also Read | Contempt case: SC to decide punishment for Vijay Mallya on Jan 18, extradition formalities in final stages

Meanwhile, Finance Minister Nirmala Sitharaman stated that lenders have recovered Rs 13,109.17 crore from the asset sales of fugitives such as Vijay Mallya, Nirav Modi, and Mehul Choksi, emphasising that the most recent recovery was Rs 792 crore from the sale of assets belonging to former Kingfisher Airlines CEO and others on July 16, 2021. A Mumbai court labelled Mallya a fugitive economic offender (FEO) in 2019, making him the first businessman to be designated as an FEO under the Fugitive Economic Offenders Act.
The liquor mogul is battling extradition with the British authorities to prevent his deportation to India due to his failure to repay creditors.

Also Read | UK court declares fugitive businessman Vijay Mallya bankrupt

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