Market Financial Solutions (MFS) founder Paresh Raja has denied allegations he siphoned at least £1.3bn from the Mayfair-based mortgage provider and blamed Barclays for its collapse. In a High Court defence filed Friday, Raja claimed Barclays froze MFS group accounts holding £145mn in November 2025, paralysing the business and preventing payments to staff, suppliers, borrowers and lenders. Barclays acted as MFS's primary banker and funded its operations through lending to group vehicles.

The bank is not a party to the lawsuit brought by MFS administrators, who accuse Raja of misappropriating funds to finance a lavish lifestyle including luxury cars. Barclays stated it acted in accordance with legal and regulatory obligations, calling the collapse a fraud caused by Raja. MFS collapsed in February owing over £2bn to major banks and private credit firms including Barclays, Jefferies and Apollo's Atlas SP Partners, who allege double-pledging of collateral.

Raja claims payments he received were legitimate remuneration and dividends, and that his property portfolio, valued at over £1.1bn, was held for the company's benefit. A travel ban against Raja was lifted in March, though a freezing order limiting spending to £5,000 a week remains.