Vijay Mallya loses $1.55-bn case, banks can seize UK assets: Top facts
Fugitive liquor baron Vijay Mallya is wanted in India for his Kingfisher Airlines’ default on nearly Rs 90 billion worth of loans, among other cases
Current Affairs : In a major blow to business tycoon Vijay Mallya, a UK high court on Tuesday ruled in favour of Indian banks seeking to collect more than $1.55 billion from him. The court refused to overturn an Indian court’s worldwide order for freezing of Mallya’s assets.
Mallya and his now defunct Kingfisher Airlines are embroiled in several court cases ranging from money laundering to tax evasion and loan defaults. The tycoon has been on an self-imposed exile in the UK since he left India on March 2, 2016.
What the judgment implies
The UK high court judgment will enable banks to enforce an earlier judgment of an Indian court against Mallya’s assets in England and Wales. The worldwide freezing order prevents Mallya from “removing any assets from England and Wales up to that value or to in any way dispose of, deal with or diminish the value of his assets in or outside of this jurisdiction, up to the same value”.
Who were the applicants?
The litigation in the Queen’s Bench Division of the commercial court in England’s High Court of Justice lists State Bank of India, 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 applicants.
The extradition case
The 62-year-old former industrialist is waging another fight in a different court to block his extradition to India over financial irregularities and money laundering cases.
The case is being heard by the Westminster Magistrate Court in London and the final verdict is expected on July 11.
On 27th April, Indian authorities received a major boost in the case as the court accepted bulk of the evidence submitted by them.
In April last year, Mallya had been arrested by Scotland Yard on an extradition warrant. He is out on a bail bond worth 650,000 pounds.
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