The London High Court on Wednesday, has asked Indian businessman and fugitive Vijay Mallya to pay back £88,000 mortgage, which he took from Union Bank of Switzerland (UBS) for his Baker Street house.
The case filed by UBS alleged that Mallya has defaulted on the given mortgage of £20.4 million on Mallya’s call.
Mallya had borrowed £20.4 million mortgage from UBS in March 2012, for given period of five years. Earlier, Mallya had also bought property in Regent’s Park in 2005, which was listed in Grade 1 building.
However, Mallya claimed back that UBS calling for loan is early and that, in this property, he, his mother and son all were entitled to “occupation right”.
The apex court has scheduled the main trial in May 2019, where the court will decide whether Mallya is worthy to hold on to his luxury pad in London.
The court’ decision came ahead of UBS lawyer submitting order related to legal costs. Within one hour of hearing on Wednesday, Chief Master Mathew Marsh in the Business and Property Court passed the order. After the court found Mallya’s raised objections as “bound to fail”, the issue related to cost has arose.
Mallya’s lawyer suggested the High Court to grant Mallya a time limit of eight weeks to pay back amount 30,000-40,000 pounds as legal costs. However, the judge stated that 88,000 pounds was a “proper amount” and that “this was a complex application”.
UBS’s lawyer stated in a notice to the court that the delay in the process of Mallya’s repayment of the mortgage “makes us nervous”. Stating the January 4, 2019 not an “aspirational date”, the court instructed Mallya’s lawyer that payment is must to be made in full. Chief Master Marsh also termed the deadlineas “an extended period which aired on the side of generosity”.