Big blow to Vijay Mallaya! London High Court declares fugitive businessman bankrupt, banks won the case

New Delhi. Fugitive Vijay Mallya, who was declared a fugitive from India, got a tremendous setback from the London High Court on Monday. The London High Court declared Vijay Mallya bankrupt. With this, a consortium of Indian banks led by State Bank of India (SBI) won the case related to recovery of loans given to Mallya’s company Kingfisher Airlines. This decision of the London High Court has now opened the way for confiscation of Vijay Mallya’s property. However, the matter of appealing against the High Court order on behalf of Mallya is also coming to the fore.

During a virtual hearing in May 2021, the London HC had upheld an application to amend the bankruptcy petition of banks in favor of waiving their security on the assets of a distressed businessman in India. Banks had accused the 65-year-old businessman of trying to hang matters and called for the bankruptcy petition to be brought to an end. It is known that Vijay Mallya is out on bail in the UK, while a confidential legal matter is resolved in connection with the extradition proceedings.

is over £1 billion
The SBI-led consortium includes Bank of Baroda, Corporation Bank, Federal Bank Ltd., IDBI Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Company Pvt Ltd as well as an additional creditor. are following a bankruptcy order in respect of a judgment loan in the UK, which exceeds £1 billion.

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So far the bank has recovered
Recently, a consortium of banks led by State Bank of India (SBI) recovered Rs 792.12 crore by selling shares of fugitive businessman Vijay Mallya’s Kingfisher Airlines. This information was given by the Enforcement Directorate (ED) on 16 July. In the Vijay Mallya case, these shares were handed over by the ED to the consortium. Earlier, the same consortium had recovered Rs 7,181.50 crore through liquidity of properties handed over by the ED. Apart from this, banks have been allowed to confiscate assets worth Rs 1,060 crore on behalf of the Fugitive Economic Offenses Court in the Nirav Modi case. The ED has seized Rs 329.67 crore under the provisions of the Fugitive Economic Offenders Act.

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