Fugitive Indian businessman Vijay Mallya has been declared bankrupt by a British court allowing Indian banks to pursue his assets worldwide. During a virtual hearing of the Chancery Division of the London High Court, Chief Insolvencies and Companies Court Judge Michael Briggs said he adjudicates Mallya bankrupt. The court also declined permission for an appeal or a stay on the bankruptcy order.
Mallya owes more than 9,000 crore rupees to a consortium of banks in principal and interest. The petitioners were SBI-led consortium of 13 Indian banks. The ruling is being seen as a major victory for the consortium of Indian banks, pursuing a worldwide freezing order to seek repayment of debt owed by Mallya’s now-defunct Kingfisher Airlines by seizing his Indian assets.
Mallya, who fled to the UK, is being probed by the Indian agencies for bank fraud and money laundering charges and is on bail in the UK.