Court orders sale of yacht linked to Vijay Mallya

LONDON: A London high court has ordered that Vijay Mallay’s 46-metre luxury yacht Force India and everything inside it be sold and the proceeds be distributed amongst its creditors.


His son Sidhartha Mallya, who is the 'ultimate owner' of the yacht, has been ordered to pay Qatar National Bank more than €6 million (Rs 47 crore) in full repayment of a real

estate

mortgage. QNB is enforcing the mortgage after Mallya defaulted on repayments on a separate loan to purchase a private estate in the French Riviera. The yacht had been given as security for part of the loan. The vessel is currently arrested in

Southampton

.

The admiralty court, during a trial on January 15, heard that whilst the legal owner of the super yacht is

Force India Ltd

, a company incorporated in

Malta

, the shares in the company are held by Continental Administration Services Ltd, a company of professional trustees, on trust for Sidhartha.

The Mangusta 165 yacht, built in 2007, is currently being marketed for Rs 109 crore by Boat International. Its website states “the yacht sleeps 10, has sumptuous seating, a spacious fly bridge and al fresco dining”.

Justice Teare on Monday ruled in favour of QNB, ordering full repayment of the €5 million (Rs 39 crore) mortgage given to the yacht, plus interest, plus all costs of collection and enforcement.

QNB granted the €5 million mortgage on the yacht on February 15, 2017 as additional security on a seven-year €27 million loan given by Ansbacher in August 2008 to a company in Luxembourg called Gizmo — ultimately owned by Vijay Mallya — to acquire the shares of a French company whose only asset is the large estate on the historical Isle St. Marguerite, a 10-minute boat ride from Cannes, known as Le Grand Jardin.

“Vijay Mallya is the ultimate beneficial owner of Gizmo Invest S.A. which has the benefit of the loan facility. The principal director of Force India is Andrea Vallabh, who is one of the directors of the corporate trustee of the Mallya family trusts. The yacht is owned by Sidhartha and Force India Ltd and used partly for private enjoyment save on those occasions when it is employed in fulfilling commercial charters to earn income to defray its running costs,” Chris Smith QC, representing Force India, told the court.

Set in grounds of over 1.3 hectares, Le Grand Jardin has 17 bedrooms, a swimming pool, gym, sauna and steam room, private cinema, night club, large wine cellar, private helipad, staff quarters and rooftop terrace with panoramic views of the Mediterranean.

Explore the yearly horoscope 2025 for Aries, Taurus, Gemini, Cancer, Leo, Virgo, Libra, Scorpio, Sagittarius, Capricorn, Aquarius, and Pisces zodiac signs. Don't miss the Chinese horoscope 2025 for Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog, and Pig zodiac signs.