Councillor Faces Multi-Hundred-Thousand Dollar Lawsuit Over Alleged Loan Default
A prominent Maribyrnong councillor is at the centre of a significant legal battle, having been sued for hundreds of thousands of dollars by ANZ Bank over an alleged default on a business loan. Councillor Pradeep Tiwari, a former mayor and business owner, claims the issue is a result of a simple miscommunication that has since been rectified.
The Supreme Court was served with a lawsuit by ANZ Bank on Monday, detailing claims that Cr Tiwari owes $379,463. The funds in question were borrowed in 2020 to support his business ventures.
Warehouse Security and Loan Details
A writ, which has come to light, reveals that ANZ Bank is seeking possession of Cr Tiwari’s warehouse located in Hoppers Crossing. This property was provided as security for the original business loan of $474,035. The bank’s legal action was reportedly triggered by Cr Tiwari’s alleged failure to repay $26,765 in arrears by November. Following this, ANZ issued a formal demand, setting a deadline of January 5 for repayment, failing which mortgage enforcement proceedings would commence.
Cr Tiwari is the proprietor of Bharat Traders, an Indian supermarket situated on Barkly Street in West Footscray. He was elected to the Maribyrnong Council as a Labor-aligned candidate in 2024, following a seven-year tenure as president of the local traders association.
Councillor’s Response to Legal Action
Initially, Cr Tiwari did not comment on the legal proceedings. However, by Friday evening, he issued a brief text message stating, “This was a private matter between me and ANZ which has already been sorted.”
When pressed for further details on Saturday, Cr Tiwari elaborated, asserting that ANZ Bank had informed him they would no longer be pursuing legal action. He attributed the situation to a “temporary repayment issue which arose due to a breakdown in communication, as the bank had outdated contact details for me.” He further stated that upon becoming aware of the issue, he engaged directly with ANZ and has since brought his repayments back on track. Cr Tiwari claims that ANZ has confirmed in writing that no legal action is being pursued following this engagement.
However, the Supreme Court confirmed on Friday night that no notice of discontinuance had been filed in the lawsuit against Cr Tiwari. ANZ Bank, meanwhile, has declined to comment on the matter, citing their policy of not discussing individual customer cases.
Cr Tiwari also indicated on Saturday that his overdue repayments amounted to approximately $10,000, a figure significantly lower than that stated in the bank’s claim. He emphasised that this situation has not impacted his capacity to fulfil his duties as a councillor, maintaining that his personal financial matters are distinct from his public responsibilities.
Potential Impact on Eligibility
Despite Cr Tiwari’s assurances, his financial situation could potentially affect his eligibility to serve as a councillor. The Local Government Act stipulates that individuals are disqualified if they are undischarged bankrupts or if their property is subject to control under bankruptcy laws. However, it appears unlikely that the alleged debt would lead to bankruptcy, given the value of the Hoppers Crossing property. Records indicate that Cr Tiwari purchased the warehouse for $395,000 in 2004. If the Supreme Court were to grant ANZ possession, the sale of the property is expected to cover the alleged debt. The site had previously functioned as a wholesale store for Bharat Traders before being advertised for lease in January.
Past Legal Challenges
This is not the first time Cr Tiwari has faced legal scrutiny. While serving as mayor last year, 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 that specific allegation was eventually dropped, he was fined $450 without conviction in October for driving with an unrestrained passenger. The incident involved him being observed on CityLink with a young child on his lap in June 2024.
At the time, his lawyer informed the court that Cr Tiwari had been suspended from the council as a consequence of these charges and had experienced distress due to media coverage of his “inadvertent failure” to appear in court. In a Facebook post following the verdict, Cr Tiwari disputed reports of his arrest warrant, labelling them as false and misleading. He claimed he was unaware of the court date or charges before becoming a wanted individual. He also provided an explanation for the unrestrained child, describing his child as a “Houdini” who had slipped out of the seatbelt, and that he had placed the child safely on his lap while driving to the nearest safe location to pull over.
Cr Tiwari sought another year-long term as mayor in November, but ultimately lost the council vote to Mohamed Semra.
The Maribyrnong Council has declined to comment on the recent civil lawsuit, characterising it as a private matter concerning Cr Tiwari.
