Vijay Mallya, the most wanted fugitive in India was declared bankrupt by a British court on Monday. The court granted a bankruptcy order against Mallya, clearing the way for a consortium of Indian banks led by the State Bank of India (SBI) to pursue a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines.
“As at 15.42 [UK time], I adjudicate Dr Mallya bankrupt,” Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court here.
The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in favour of the Indian banks.
Vijay Mallya who fled to UK was being probed by Enforcement Directorate for Rs.9000 bank fraud in India
The 65-year-old , once upon a time a high profile, high flying businessman, remains on bail in the UK while a “confidential” legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings.
The petitioners were made up of SBI-led consortium of 13 Indian banks, including Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd as well as an additional creditor, had been pursuing a bankruptcy order in the UK in relation to a judgment debt which stands at over GBP 1 billion.
I am naturally disappointed with the High Court decision. I will continue to pursue further legal remedies as advised by my lawyers. I am also disappointed with the media narrative which states that I must face trial in India for a fraud of Rs 9000 crores. Vijay Mallya had stated while he was pursued by the law in India for fraud.