Maribyrnong Councillor Sued by ANZ Over Alleged Loan Default
A Maribyrnong councillor is facing a substantial lawsuit from ANZ Bank, with claims of owing hundreds of thousands of dollars due to an alleged loan default. Councillor Pradeep Tiwari, who was elected to the local council in 2024, maintains that the issue is a result of a simple miscommunication that has since been rectified.
The Supreme Court was approached by ANZ Bank on Monday, initiating legal proceedings against Councillor Tiwari. The bank alleges that he owes $379,463 in relation to a business loan secured in 2020.
Legal Action and Security
A writ, which became available for public viewing on Thursday evening, details ANZ Bank’s demand for possession of Councillor Tiwari’s warehouse located in Hoppers Crossing. This property was reportedly provided as security for the initial business loan of $474,035.
The core of the bank’s claim appears to stem from an alleged failure to repay a sum of $26,765 in arrears, which was due in November. Following this alleged default, ANZ Bank reportedly issued a formal letter to Councillor Tiwari, demanding full repayment by January 5th, or face the commencement of mortgage enforcement proceedings.
Councillor Tiwari’s Response
Councillor Tiwari, who also served as the president of the local traders association for seven years prior to his election, initially refrained from commenting on the legal action. However, he broke his silence on Friday evening, stating via text message that the matter was a “private matter between me and ANZ which has already been sorted.”
Further inquiries on Saturday led to more detailed explanations from Councillor Tiwari. He asserted that ANZ Bank had communicated to him that they would no longer be pursuing legal action. While he did not provide documentary evidence of this correspondence, he elaborated on the circumstances.
“This matter relates to a temporary repayment issue which arose due to a breakdown in communication, as the bank had outdated contact details for me,” Councillor Tiwari explained. “As soon as I became aware of the issue, I engaged directly with ANZ and have since brought repayments back on track. ANZ has confirmed in writing that, following this engagement, they are not pursuing any legal action.”
Court Records and ANZ’s Position
Despite Councillor Tiwari’s assertions, the Supreme Court confirmed on Friday night that no official notice of discontinuance had been filed in relation to the lawsuit against him. ANZ Bank, in line with its policy, declined to comment on the specifics of the case, stating that it does not discuss individual customer matters.
Councillor Tiwari also stated on Saturday that the total of his overdue repayments was approximately $10,000. He emphasised that these personal financial matters have not, and will not, impact his ability to fulfil his duties as a councillor, maintaining a clear separation between his public responsibilities and his private affairs.
Potential Eligibility Concerns
While Councillor Tiwari insists his financial situation is resolved, the Local Government Act does outline conditions under which a councillor’s eligibility could be questioned. Specifically, a person is deemed unqualified to serve if they are an undischarged bankrupt or if their property is subject to control under bankruptcy laws.
However, it appears unlikely that the alleged debt would directly lead to bankruptcy proceedings. Records indicate that Councillor Tiwari purchased his warehouse in Hoppers Crossing for $395,000 in 2004. If the Supreme Court were to grant ANZ Bank possession of the property, its sale would likely be sufficient to cover the alleged debt of $379,463. The warehouse, previously a wholesale storage facility, was advertised for lease in January.
Previous Legal Encounters
This is not the first time Councillor Tiwari has encountered legal challenges during his public service. In August of the previous year, while serving as mayor, a warrant was briefly issued for his arrest after he failed to appear in court for a dangerous driving charge.
Although the dangerous driving allegation was eventually dropped, Councillor Tiwari was fined $450 without conviction in October. This penalty was for driving with an unrestrained passenger, a situation observed on CityLink in June 2024, where a young child was reportedly seated on his lap.
At the time, his legal representative informed the court that the charges had led to Councillor Tiwari’s suspension from the council and that he had been significantly affected by media coverage of his “inadvertent failure” to attend court.
Following the verdict, Councillor Tiwari posted on Facebook, refuting reports of his arrest warrant as false and misleading. He claimed he was unaware of the court date or the charges prior to becoming a “wanted man.” He explained the incident involving his child by stating: “My child is a Houdini, and had slipped out from the seat belt and I sat them on my lap, safely, while driving to the nearest place at which I could safely pull over.”
Councillor Tiwari had sought another year-long term as mayor in November but was unsuccessful, with Mohamed Semra securing the position through a council vote.
Maribyrnong Council has declined to comment on the current legal action, classifying the civil lawsuit as a private matter.
