Deutsche Bank AG won a lawsuit brought by a family of politicians from Pakistan over loans they used to invest in luxury London properties after a U.K. judge threw out claims they were misled by the lender.
The Khan family, including former privatization minister Waqar Ahmed Khan, his father Gulzar Khan and companies they set up, sued Deutsche Bank for about 60 million pounds ($90 million), saying it misvalued properties and didn’t honor promises of additional funding to develop them.
Deutsche Bank sought to enforce repayment of loans worth about 55 million pounds, which the Khans’ companies used to buy apartments at The Knightsbridge development overlooking London’s Hyde Park and on Bishop’s Avenue, one of the city’s most expensive locations.
“A myriad of defenses and claims have been raised to resist” Deutsche Bank’s action and those defenses failed, Judge Nicholas Hamblen said in a written decision. “The case is in reality a simple debt and possession claim enforceable” under the terms of the contact.
Waqar Ahmed Khan said the family only owed the bank 46,000 pounds, in a statement released by public relations firm Weber Shandwick. “It’s a pity they didn’t tell us that beforehand -- they’re welcome to the money,” he said.
Deutsche Bank spokeswoman Kathryn Hanes said the lender was pleased by the judgment.