Special court ruling deals a blow to Vijay Mallya; allows banks to utilize seized assets

Mumbai: Prevention of Money Laundering Act (PMLA) court in Mumbai has allowed banks that had lent money to fugitive liquor baron Vijay Mallya to utilize his seized assets.

The parties affected could appeal to the Bombay High Court.

As many as twelve state-owned banks had petitioned for ex-billionaire Vijay Mallya to be declared bankrupt over 1.15 billion pounds (over Rs 10,000 crore) in unpaid debts.

The banks and an asset restructuring company, led by the State Bank of India, have taken the absconding liquor baron to a London court where lawyers told that Mallya has not paid anything toward the debt.

Mallya, who is the founder of the now-defunct Kingfisher Airlines Ltd., faces extradition to India to face fraud charges.

Mallya has lived in the U.K. for around 20 years owing to which the bankruptcy petition was brought in the U.K.

Mallya owns a townhouse in London’s Regent’s Park worth more than 30 million pounds (nearly Rs 280 crore), a mansion in Hertfordshire worth around 13 million-pound (Over 100 Rs crore), three yachts and shares in the Force India Formula One Team Ltd.

He had been arrested on an extradition warrant back in April 2017 after 17 banks accused him of willfully defaulting on more than 91 billion rupees ($1.3 billion) in debt gathered by Kingfisher Airlines, which shut down in 2012.

Also Read: IDBI issues public notice on Vijay Mallya as ‘wilful defaulter’

Also Watch: Minister Pijush Hazarika rebuts claims of paid crowd at BJP peace rally in Jagi Road