Vijay Mallya has lost a lawsuit filed against him by a consortium of 13 Indian banks. This is a great setback for the business tycoon as he has to give $15.5 billion to these banks. Here, it is pertinent to mention that Debit Recovery Tribunal (DRT) had given a decision against him in 2017. The tribunal had ordered the freezing of Mallya’s assets all across the world. The DRT decision shows that Mallya had to give Rs.6203 crore of principal amount and the interest to the Indian banks.
Andrew Henshaw is the judge who has given the decision against him. The decision by UK high court states that DRT judgment against Mallya is legal. The judgment implies the UK enforcement officers to take legal steps to enforce the Indian judgment. Now, Indian banks can either seize or sell Mallya’s assets in England and Wales. This is because Mallya owes Rs. 9000 crore from the Indian banks.
The judgment states that there is a risk of the value of Vijay Mallya’s assets deteriorating. It also shows the risks of claims on Mallya’s property by some other creditors. This could make Mr. Mallya bankrupt. Also, flee of Mallya from India is enough to prove that the assets in England and Wales are a result of money laundering and fraud. Here, it is worth mentioning that Indian banks got a freeze order against Vijay Mallya from UK high court on November 24, 2017. Mallya had also registered a case to set aside the orders of Indian DRT and discharge the freezing orders.
UK high court had earlier given enough time to Mallya’s lawyer to respond. The next date set for hearing is July 11. Mallya would remain on bail of 650,000 pounds. It is worth mentioning that Scotland Yard had issued arrest warrants of Vijay Mallya in April 2017.
