Former property magnate Michael Taggart is among a group of people caught up in a legal battle over allegedly failing to complete the purchase of luxury apartments in Belfast’s redeveloped Ormeau Bakery.

Mr Taggart (43) who owned Taggart Holdings — once the biggest house building firm in Northern Ireland — is understood to be one of around 20 people being sued by developer Barry Gilligan.

Mr Gilligan is also the head of the Northern Ireland Policing Board.

It is alleged Mr Taggart, originally from Londonderry, along with the other respondents, had signed contracts for apartments at the Ormeau Bakery development in south Belfast in 2007 during the property boom — but did not meet the deadline to complete the deal. The contracts were not ‘subject to mortgage', which means if buyers cannot get finance from the banks for the transaction they are still liable for the purchase.

The matter is now being dealt with in the High Court.

It is understood around 10 people have entered a legal bid to win back their deposits and have their contracts cancelled by Big Picture Developments, the company run by Mr Gilligan. Since the housing boom peaked in spring 2007 property prices have dropped by around 30%, and the apartments are now worth less than the original selling price.

This has led to banks becoming reluctant to agree mortgages.

The situation means those unable to find the money for properties they agreed to could lose big deposits or face a claim for the total cost.

Mr Gilligan was not available for comment.

Mr Taggart, a former winner of the Ernst & Young Entrepreneur of the Year award, began developing property with his brother John in Co Derry in the 1980s. But, following many years of success, in October 2008 the banks appointed an administrator to his company. It is understood he owes an estimated £170m.

It is understood that Mr Taggart is one of a number of other wealthy professionals including solicitors and doctors who are embroiled in the legal wrangle.

The Sunday Times Rich List once estimated that he was worth around £108m.

When he married his long-time partner Jenny in September 2007 Van Morrison and Lionel Richie were in attendance to serenade the happy couple and their several hundred guests.