UK HC declares Mallya bankrupt, allowing Indian Banks to pursue recovery

Fugitive Indian businessman Vijay Mallya has been declared bankrupt by a British court allowing Indian banks to pursue his assets worldwide. During a virtual hearing of the Chancery Division of the London High Court, Chief Insolvencies and Companies Court Judge Michael Briggs said he adjudicates Mallya bankrupt. The court also declined permission for an appeal or a stay on the bankruptcy order.  Vijay Mallya launched a tirade on Twitter as he accused lenders pursuing of making him bankrupt.

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.

— Vijay Mallya (@TheVijayMallya) July 26, 2021

Mallya owes more than 9,000 crore rupees to a consortium of banks in principal and interest. The petitioners were SBI-led consortium of 13 Indian banks. The ruling is being seen as a major victory for the consortium of Indian banks, pursuing a worldwide freezing order to seek repayment of debt owed by Mallya’s now-defunct Kingfisher Airlines by seizing his Indian assets.Mallya, who fled to the UK, is being probed by the Indian agencies for bank fraud and money laundering charges and is on bail in the UK. Fugitive businessman remains on bail after he was ordered to be extradited in December 2018 by the Westminster magistrate's court in London. He has repeatedly tried and failed to overturn the court ruling. He has exhausted legal procedures available to fight the government's effort to extradite him to India.