Huge Setback To Vijay Mallya In UK

Huge Setback To Vijay Mallya In UK

In a huge setback to the beleaguered business magnate Vijay Mallya, who allegedly committed a massive financial fraud and fled to the UK where he is a citizen, has lost a UK lawsuit filed by the Indian banks. Indian banks had filed a UK lawsuit against Mallya seeking to collect more than 1.55 Billion USD (over Rs 10,000 Crore) from him.

In a landmark ruling, a British High Court judge ruled that an Indian judgment against Mallya can legally be enforced against his assets in England and Wales. Judge Andrew Henshaw on Tuesday (May 8, 2018) said the lenders, including IDBI Bank Ltd., can enforce an Indian court ruling that relates to the allegations that Mallya willfully defaulted on about 1.4 billion USD (over Rs 9000 Crore).  Meanwhile, the judge Henshaw also refused to overturn a worldwide order freezing Mallya's assets.

The British judge ruled the judgment dating January 19, 2017 of the Debt Recovery Tribunal (DRT), Karnataka, Bengaluru, which states that Mallya owes the banks Rs 6,203 crore plus interest (Rs 9,863 crore as of Nov 22, 2017), can now legally be registered in England.  Mallya's debt is for his now-defunct Kingfisher Airlines Ltd.

The lawyers for Vijay Mallya have declined to comment after the ruling. With this, a consortium of 13 state-owned Indian banks led by the State Bank of India, is expected to move things swiftly.

62-year-old Vijay Mallya is facing numerous allegations of fraud, money laundering. He has been considered as fugitive. Mallya had left India in 2016, and hasn't returned ever since. He said he fears an unfair trial amid the "media frenzy and hysteria" over unpaid debts. Mallya has also said government agencies are pursuing a "heavily biased investigation" and "holding him guilty without trial".