A travel ban imposed on Market Financial Solutions (MFS) owner Paresh Raja has been lifted, despite a worldwide freezing order remaining in place as legal proceedings surrounding the collapsed specialist lender continue.
According to the Financial Times, Raja had been prevented from leaving Dubai after administrators secured the freezing order earlier this year following the collapse of MFS in February.
The order, which remains in force, requires Raja to disclose assets worth more than £10,000 and limits his weekly spending without consent, but no longer restricts his ability to travel internationally.
The lifting of the travel ban comes as administrators continue High Court proceedings against Raja, alleging the systematic diversion of funds from the business.
“Raja has denied the allegations and has consistently maintained there was no fraud or dishonesty.”
Raja has denied the allegations and has consistently maintained there was no fraud or dishonesty.
Court filings claim creditors face an estimated shortfall of at least £1.3 billion and that around £250 million remains unaccounted for. Raja has denied the allegations and has consistently maintained there was no fraud or dishonesty.
The collapse of MFS sent shockwaves through the specialist property finance market earlier this year, prompting scrutiny of underwriting standards and warehouse funding structures. Major institutional lenders, including Barclays, Jefferies and Atlas SP Partners, are among creditors seeking to establish the value of collateral underpinning more than £2 billion of lending.
The Financial Conduct Authority is investigating the collapse, while the Bank of England has reportedly questioned regulated firms about their exposure to MFS. Separately, the Financial Reporting Council is examining several accountancy firms involved with parts of Raja’s wider lending group.
Last month, the High Court approved the sale of part of Raja’s luxury vehicle collection, comprising eight supercars with an estimated value of £1.625 million.
The litigation and regulatory investigations remain ongoing, with administrators continuing efforts to recover assets on behalf of creditors.
