In a latest legal trouble to former Indian business tycoon Vijay Mallya, a court in the UK has started bankruptcy proceedings against him.
According to a new report published in Indian daily, The Hindustan Times, Vijay Mallya is facing bankruptcy proceedings in a court in London brought by India’s biggest bank, State Bank of India (SBI), and other 12 lenders seeking to recover £1.145billion extended as loans to grounded Kingfisher Airlines, Mallya guaranteed.
The consortium of lenders led by SBI needs to rule Vijay Mallya as bankrupt as part of the efforts of the lenders to seize his properties in the UK to recover his loans. However, the former liquor baron is planing to contest the new petition which, according to him, is not sustainable, the daily reported.
“Nothing different to what has been happening over the past four years since the (Indian) government began hounding me,” Vijay Mallya said in a reply when asked by The Sunday Times how he felt on the latest development.
Earlier, it was believed that Mallya is on his way to lose his house in London after the court in the UK announced its judgement favouring Swiss lender UBS which had filed its petition to seize business tycoon’s property following non-payment of loans.
The lender had sought repossession of the assets of Vijay Mallya at Cornwall Terrace, overlooking Regent’s Park in the central London over non payment of a £20.4million mortgage loan.
The high court in London in a judgement has ruled in-favour of Swiss lender UBS to take Mallya’s central London residence into its possession.
The judge chief Master Marsh stated that he can see no foundation upon which the defendants should be given an opportunity to amend their defence. A trial in the case has been set for May 2019.
The Westminster court in London has already ruled for the extradition of Mallya, wanted in India for alleged bank fraud and money laundering charges amounting to an estimated Rs 90bn.