Vijay Mallya is an Indian businessman who left the country some years ago. He is now officially declared bankrupt by a British court. On Monday, the Insolvency and Companies Court of the London high court gave the verdict. The order has taken effect immediately. However, Mallya does have the option of seeking permission to appeal from a higher court.
The press office of the United Kingdom’s high court released a statement. It asserted that the Insolvency and Companies Court had declared Vijay Mallya bankrupt. This move is being welcomed by the consortium of Indian banks.
The consortium is led by the State Bank of India. Moreover, it was trying to make Mallya bankrupt. The reason being Mallya’s inability to clear the judgment debt of £1.05 billion (Rs 10,763 crore). It is determined by Karnataka’s Debt Recovery Tribunal in January 2017.
Tweet by Vijay Mallya
On July 26, Mallya tweeted, ‘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.’
Reportedly, the fugitive businessman left the country in 2016. He is continually seen fighting cases for avoiding extradition to India. The 13-banks consortium is now able to freeze Mallya’s assets, as the UK court has given its judgement. According to a media report, Mallya owes over ₹9,000 crores to the consortium of banks in principal and interest.
His lawyer Philip Marshall QC argued, ‘there are a number of other assets which although not yet realised are held with the DRT officer and can be realised. If we combine all that together you end up with a figure well in excess of the petition debt.’
Mallya’s bank accounts stand frozen as per the court’s order.