Western Australian Lawmaker Faces United States Court Action Over Unpaid Loan Allegations

Western Australian Labor parliamentarian Jags Krishnan has announced his intention to contest a United States lawsuit concerning an unpaid loan totaling nearly $1 million. Dr Krishnan, who has represented the southern suburbs electorate of Riverton since 2021, maintained that his actions regarding the matter were entirely lawful and proper.

Court documents filed in the New Jersey District Court and reviewed by ABC News show that Kenyan Consulting LLC initiated legal action against Dr Krishnan, his wife, and three associated companies. The plaintiff alleges breach of contract and unjust enrichment stemming from an asserted failure to repay a loan of $US655,000, equivalent to approximately $930,500, plus accumulated interest.

Addressing reporters outside his electorate office on Thursday, Dr Krishnan read from a prepared statement confirming he would contest the allegations. "I'll vigorously defend my position in court," he stated, declining to discuss specifics of the claims due to ongoing legal proceedings.

In response to the litigation, Dr Krishnan has retained Perth lawyer Martin Bennett to manage the defence for both himself and his wife. Mr Bennett confirmed that his clients intend to fully contest the claims brought against them in the American court.

Alongside the defence in the United States, Dr Krishnan stated through his legal representation that he plans to initiate defamation proceedings in the Western Australian Supreme Court against a representative of Kenyan Consulting and another individual.

Western Australian Premier Roger Cook addressed the situation, stating that he was first informed of the specific details surrounding the dispute during the preceding week and declined to offer further public comment on the matter.