Vijay Mallya, Former Liquor Baron Is Now Bankrupt; All His Assets In India, Abroad To Be Seized
In a big blow to fugitive liquor baron Vijay Mallya, the London High Court on July 26, declared him bankrupt.
Seizure of assets in India and abroad
The ruling will help the consortium of Indian banks led by the State Bank of India to recover debt from loans given to Vijay Mallya¡¯s now-defunct Kingfisher Airlines by seizing his assets in India and abroad.?Mallya had reportedly tried appealing against the High Court verdict but was refused permission to do the same.
Earlier this year in May, a UK Court had upheld an application by a lender consortium led by the SBI to amend their bankruptcy petition in favour of waiving their security over Mallya¡¯s assets in India.
Wanted in Rs 9,000 crore bank fraud
Mallya is wanted in India for Rs 9,000 crore loan defraud. "As at 15.42 (UK time), I adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court Judge Michael Briggs said during a virtual hearing of the Chancery Division of the London High Court.
Following London High Court declaring businessman Vijay Mallya as bankrupt, the fugitive said the Enforcement Directorate is attaching his assets worth Rs 14,000 crores against debt of Rs 6,200 crores. He also levelled allegation that the banks are making him bankrupt since they have to return money to the ED.
Mallya's rant on Twitter
¡°ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores. They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more. Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible,¡± Mallya said in a tweet on Monday.
Vijay Mallya had fled India hours before banks had moved the Supreme Court seeking his detention. India has been engaged in efforts for his extradition since.??
Mallya is currently out on bail in the UK while a 'confidential' legal matter, believed to be related to an asylum application, is being resolved in connection with the unrelated extradition proceedings.
'India made its best case'
Meanwhile, Foreign Secretary Harsh Vardhan Shringla reacted to the move and said that India has made its best case on Vijay Mallya being wanted for economic offences and the Indian government has the best assurance from the UK authorities of his extradition to face charges of fraud and money laundering related to unpaid loans to his now-defunct Kingfisher Airlines.
