London court has slammed fugitive businessman Vijay Mallya on Tuesday. Vijay Mallya, who filed a bankruptcy petition in the High Court, is defeated here. After this decision of the court, the State Bank of India (SBI) can be easy to recover debt by selling its assets.
The London High Court has lifted the security cover imposed on Mallya's property in India. With this, the consortium of SBI-led Indian banks has come closer to recovering debt from Mallya. Now the Indian banks will be able to recover the loan given to the closed Kingfisher Airlines by capturing Mallya's property in India.
A consortium led by SBI, during a hearing in the London High Court in April, tried very hard to declare the fugitive businessman bankrupt. Vijay Mallya owes a debt of Rs 9,000 crore to the closed Kingfisher Airlines. Vijay Mallya used to say that the debt owed on him is public money. In such a situation, banks cannot declare him insolvent.
Mallya had also claimed that the insolvency petition filed by Indian banks was outside the purview of the law. They cannot impose the security of their property in India, as it is against the public interest in India. Michael Briggs, the judge of the Chief Insolvency and Companies Court (ICC) of the London High Court, ruled in favor of Indian banks, saying there was no public policy that would provide security rights to Mallya's assets.
The bank may delay the extradition of Vijay Mallya, who escaped to India, after losing the extradition case in Britain and dismissing his asylum appeal from the UK Home Ministry. Mallya is trying everything so that he does not have to come to India. Law experts say that his chances of winning the case in the UK are very less, but still his maneuver gives him a few more days to live in the UK. Experts say that almost all laws of Mallya's stay in Britain have been closed.
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