Former billionaire Vijay Mallya lets the French mansion rot and the lender charges
NEW DELHI: Vijay Mallya The palatial house of the island has 17 rooms, a cinema, a private helipad and even its own disco. But one of the banks that sued him for unpaid debts alleges that the former billionaire left him in bad shape.
Mallya bought Le Grand Jardin through his company Gizmo Invest SA in 2008 using a loan of 27 million euros ($ 30 million) from Ansbacher&co,aunitofqatarnationalbanksaq.gizmohasdefaultedontheloansincethen,thebanktoldalondoncourtonwednesday.
He is seeking a court order to force Mallya to sell his 50-meter (164-foot) superyacht currently confiscated in southern England because a 5 million euro mortgage on the ship serves as collateral for the loan, he said.
By September 2015, when the loan expired and Mallya faced a demand of $ 100 million from Diageo Plc and a demand of $ 1.2 billion from a consortium of Indian banks, ownership of 1.3 hectares on the French island Ile Sainte Marguerite had fallen in poor condition The bank's lawyer, Gideon Shirazi, said in court documents.
Designers and interior builders unfit for repairs on the property left it in a worse state, he said. Upon Mallya's request to extend the loan, the bank ordered Knight Frank to inspect the property, and real estate agents discovered that the value had fallen by 10 million euros to 30 million euros. By January 2018, work on the property was still incomplete, according to the bank.
Mallya and the National Bank of Qatar did not immediately respond to requests for comment. Mallya was not represented in court.
The yacht was seized by marine insurer Skuld in January 2018 for non-payment of crew salaries. The island's house is now for sale.
King of good times
It occurs when Mallya, who founded the now-disappeared Kingfisher Airlines Ltd, faces extradition to India on charges of fraud. He was granted permission to appeal, which will be heard in February.
Mallya, quien era conocido como el King of good times en la India, fue arrestado en Londres en abril de 2017 después de que 17 bancos lo acusaron de incumplir deliberadamente la deuda acumulada por la aerolínea, que cerró en 2012. Un incumplidor intencional es alguien que se niega a pagar los préstamos a pesar de tener los medios para hacerlo.
The tycoon also faces a petition from 12 Indian state-owned banks that requested that more than 1.15 billion pounds ($ 1.5 billion) be declared bankrupt in unpaid debts in a London court last month. Mallya's lawyers argued that the hearing should be postponed until a decision on his appeal against the extradition order.