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.
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.
