UK court orders sale of Vijay Mallya’s yacht to repay debt

A United Kingdom court on Monday ordered that a Force India yacht linked to former liquor baron Vijay Mallya be sold and its proceeds amounting to EUR 6 million be used to repay Qatar National Bank to enforce its mortgage on the vessel.

In a separate case, the State Bank of India (SBI) and a consortium of banks are also pursuing a bankruptcy case over unpaid loans against Vijay Mallya's Kingfisher Airline, now closed down.
In a separate case, the State Bank of India (SBI) and a consortium of banks are also pursuing a bankruptcy case over unpaid loans against Vijay Mallya's Kingfisher Airline, now closed down. Photo courtesy: PIB

Justice Nigel Teare handed down a judgment in the Admiralty Division of the London High Court. 

Mallya was the personal guarantor to the loan that was supposed to be repaid by 2015. The loan did receive a few extensions but when it was not repaid, the yacht was "arrested for non-payment for crew wages" in January 2018.

"Security for the loan included a personal guarantee from Vijay Mallya, an individual closely connected with the borrower," noted the judgment.

The judgment stated that the "owner of the yacht", the defendant in this case, chose not to appear in the earlier hearings.

In a separate case, the State Bank of India (SBI) and a consortium of banks are also pursuing a bankruptcy case over unpaid loans against Vijay Mallya's Kingfisher Airline, now closed down.

The high court hearing on Mallya's appeal against the Westminster extradition order is due to be heard on February 11.

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CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indian Diaspora across Singapore, US, UK and Dubai. Connected to India covers developments around Indians abroad, informing, engaging and entertaining its audiences.

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