The High Court made a ruling on January 28 that ordered the sale of 49.9-meter Mangusta 165 M/Y Force India
to repay creditors. The vessel is reportedly owned by Siddharth Mallya, son of Vijay Mallya, Boat International
Proceeds of the sale will be used to pay back an outstanding loan of nearly €6 million to Qatar National Bank (QNB). It was reported that the yacht was bought with money borrowed from the bank. Times of India
reports that QNB is enforcing the mortgage after Mallya defaulted on repayments on a separate loan. The €5 million mortgage on the yacht was granted on February 15, 2017, as additional security on a seven-year €27 million loan given to Gizmo Invest S.A. (ultimately owned by Vijay Mallya) to acquire the shares of a French company whose only asset is the large estate on Île Sainte-Marguerite known as Le Grand Jardin.
The yacht remains under arrest in Southampton, England. As part of the process, any other claimants to the proceeds of the sale will be given notice to register their claims within an advertised period of time over the next six to 10 weeks, First Post
A court-appointed Admiralty Marshal will organize the appraisement and sale to recover the costs of collection, which the claimant is entitled to recover, says the judgment handed down by Justice Nigel Teare in London.