Vijay Mallya
Vijay Mallya, a fugitive businessman with closed Kingfisher Airlines, has suffered a major setback. A Consortium of SBI -led Indian banks has won a court appeal case against Mallya to uphold the insolvency order in Britain. In this way, Indian banks have won a big victory in a long -running legal battle. Indian banks are demanding payment of outstanding loans on Kingfisher Airlines. Indian banks had filed a petition in the UK court to declare Mallya bankrupt, so that they could recover their debt from their British status properties. Now the UK court has ruled in favor of Indian banks.
London court pronounced decision in favor of Indian banks
London High Court Judge Anthony Mann has ruled in favor of Indian banks. While two applications seeking permission for appeal filed by Vijay Mallya have been rejected. Mallya has been declared a fugitive for allegations of fraud and money laundering in India. Justice Mann said, “The arguments of the banks were such that they had to accept. The main thing in this regard is that the order of insolvency action is maintained.”
An important decision for banks
TLT LLP, a legal firm representing Indian banks, said that the decision confirms that banks have no protection on Mallya’s properties and insolvency was correct. The court also found that the assets seized by the Enforcement Directorate (ED) were conditional and did not relieve debt under the English law. Nick Carling, Legal Director of TLT LLP said, “This is an important decision for banks. TLT is happy to get this result, as the work for banks has been being done since 2017 regarding the decision of DRT (loan recovery tribunal) of 1.12 billion pounds received against Mallya.”
(PTI)
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