Businessman Vijay Mallya 65, has been declared bankrupt by the London High Court. A number of Indian banks led by the State Bank of India have won the case to recover the loans paid to Mallya’s Kingfisher Airlines.
This verdict allows his assets to be seized. Though Mallya wanted to appeal against this order, he was refused permission to appeal.
Judge Michael Briggs of the Chief Insolvencies and Companies Court passed the order during a virtual hearing of the Chancery Division of the High Court.
Mallya is on bail in the UK while a confidential legal matter is resolved in connection with the extradition proceedings.
13 Indian banks led by the SBI have been pursuing a bankruptcy order in the UK in relation to a judgment debt which is around GBP 1 billion. This debt comprises the principal and interest plus compound interest at the rate of 11.5 per cent per annum from June 2013. Mallya has filed applications in India contesting the compound interest charge. His legal team has contended that the debt remains disputed and that the ongoing proceedings in India inhibited a bankruptcy order being made in the UK.