Maribyrnong Councillor Faces Significant Legal Action Over Alleged Loan Default
A Maribyrnong councillor is embroiled in a substantial legal battle, facing a lawsuit for hundreds of thousands of dollars after allegedly defaulting on a business loan. The legal action, initiated by ANZ Bank, centres on a debt exceeding $379,000, with the bank also seeking possession of the councillor’s commercial property used as security. However, the councillor maintains that the issue is a result of a simple miscommunication and has since been rectified.
The Legal Claim
ANZ Bank filed a lawsuit in the Supreme Court against Maribyrnong councillor Pradeep Tiwari. The bank claims Mr. Tiwari owes a total of $379,463, stemming from a business loan secured in 2020. Documents released to the press reveal that the bank has also demanded possession of Mr. Tiwari’s warehouse, located in Hoppers Crossing. This property was provided as collateral for the original business loan, which was for $474,035.
According to the bank’s claims, Mr. Tiwari failed to make payments, accumulating an arrears of $26,765 by November. This prompted ANZ to issue a formal demand for repayment by January 5, warning of mortgage enforcement proceedings if the arrears were not settled.
Councillor’s Defence: Miscommunication and Resolution
Mr. Tiwari, who was elected to the Maribyrnong local council in 2024 as a Labor-aligned candidate and previously served as president of the local traders association for seven years, initially declined to comment on the legal proceedings.
However, speaking on Saturday, Mr. Tiwari stated that the matter was a “private issue” between himself and ANZ Bank, which he claims has been “sorted.” He elaborated that the bank had contacted him, indicating they would no longer pursue legal action. Mr. Tiwari attributed the repayment issue to a “temporary repayment issue which arose due to a breakdown in communication, as the bank had outdated contact details for me.”
He asserted that upon becoming aware of the situation, he “engaged directly with ANZ and have since brought repayments back on track.” He further claimed that ANZ had “confirmed in writing that, following this engagement, they are not pursuing any legal action.” Mr. Tiwari also stated that his overdue repayments totalled approximately $10,000, a figure significantly lower than that claimed by the bank.
Verification and Bank’s Stance
Despite Mr. Tiwari’s assurances, the Supreme Court confirmed on Friday night that no formal notice of discontinuance had been filed in relation to the lawsuit against him. ANZ Bank, meanwhile, declined to comment on the matter, citing its policy of not discussing individual customer cases.
Potential Implications for Councillor Eligibility
While Mr. Tiwari insists the situation has been resolved and does not impact his ability to perform his council duties, his financial standing could have implications for his eligibility to serve as a councillor. The Local Government Act stipulates that individuals are disqualified if they are undischarged bankrupts or have property subject to control under bankruptcy laws.
However, it appears unlikely that Mr. Tiwari’s alleged debt would directly lead to bankruptcy. Records indicate that he purchased the Hoppers Crossing warehouse for $395,000 in 2004. If the Supreme Court were to grant ANZ possession, the sale of this property would likely be sufficient to cover the alleged debt. The warehouse was previously used as a wholesale store and was advertised for lease in January.
Past Legal Encounters
This is not the first time Mr. Tiwari has faced legal scrutiny. Last year, while serving as mayor, a warrant was briefly issued for his arrest in August due to his failure to attend a court hearing for a dangerous driving charge. Although this allegation was eventually dropped, he was fined $450 without conviction in October for driving with an unrestrained passenger. He was observed on CityLink with a young child on his lap in June 2024.
At the time, his lawyer informed the court that Mr. Tiwari had been suspended from the council as a result of these charges and had suffered from negative media coverage regarding his “inadvertent failure” to appear in court. Following the verdict, Mr. Tiwari posted on Facebook, disputing reports of his arrest warrant and claiming he was unaware of the court date or charges. He explained that his child had managed to slip out of their seatbelt and he had placed them on his lap for safety while driving to the nearest safe location to pull over.
Mr. Tiwari also sought to retain his mayoral position for another year-long term in November but was unsuccessful, losing a council vote to Mohamed Semra.
The Maribyrnong Council has stated that it will not comment on the recent legal action, characterising the civil lawsuit as a private matter.
