Thurrock Council has launched a High Court lawsuit accusing businessman Liam Kavanagh of misusing around £150m of investment funds to pay for his ‘lavish lifestyle’.

The council, which declared effective bankruptcy in 2022, invested in bonds backed by solar farms in a series of deals with Mr Kavanagh and his company Rockfire Capital Ltd.

It alleges that Mr Kavanagh deliberately mislead the local authority to inflate the value of the investments.

It also accuses him of taking £150m meant for investment in renewable energy plants and using the money to buy luxury items including a private jet, a yacht and country estate in Hampshire.

Council leader John Kent said: ‘We have an obligation to Thurrock residents to recover as much money as possible and we will pursue these claims as vigorously as possible.

‘We have served the claim on Kavanagh in Dubai, where he now resides, and now we look forward to our day in court where he will face accusations that he deceived the council and misappropriated money to fund an extravagant lifestyle he could otherwise not afford.’

Lawyers for Mr Kavanagh said in a statement: ‘The claim has not been validly served on Mr Kavanagh and he is confident that his application challenging the court’s jurisdiction will succeed.

‘Irrespective of the question of jurisdiction, Mr Kavanagh strenuously denies the allegations. If and when necessary to do so, and should the court permit the claim to proceed, Mr Kavanagh will be putting forward a full defence.’