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Updated on: Tuesday, July 27, 2021, 10:40 AM IST

Banks asked UK court to declare me bankrupt as they have to return money to ED, claims Vijay Mallya

Photo Credit: PTI

Photo Credit: PTI

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After London High Court declared Vijay Mallya as bankrupt, the fugitive Indian businessman said that Enforcement Directorate (ED) is attaching his assets worth Rs 14,000 crores against a debt of Rs 6,200 crores.

He further said that the banks are asking Court to make him bankrupt as they may have to return money to the ED.

Taking to Twitter, Vijay Mallya said: "ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores. They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more. Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible.”

Fugitive Indian businessman Vijay Mallya on Monday was declared bankrupt by a British court allowing Indian banks to pursue his assets worldwide.

"As at 15.42 [UK time], I shall adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court.

"I have to decide if there is a real prospect of payment of petition debt in full within a reasonable period of time. there is insufficient evidence that [Mallya's asset realisations in India] will pay the debt in full within a reasonable period of time," Judge Briggs noted, in reference to defence arguments pointing to a restoration process in India following a Prevention of Money Laundering Act (PMLA) court order for the attachment of Mallya's assets.

"In my judgment, the sums provided to date are conditional. there is no evidence Dr Mallya will return to India to deal with the criminal trial and seek to unlock the allocation of realisations which have been made," the judge concluded.

Mallya, the owner of the now-defunct Kingfisher Airlines, owes more than Rs 9,000 crore to a consortium of banks in principal and interest.

The petitioners were State Bank of India (SBI)-led consortium of 13 Indian banks, including Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co Pvt Ltd.

The ruling is being seen as a major victory for the consortium of Indian banks pursuing debts owed by the now-defunct Kingfisher Airlines. Mallya fled to the UK and has been fighting on multiple fronts to avoid extradition to India.

He remains on bail after he was ordered to be extradited in December 2018 by Westminster Magistrate's Court in London - a ruling he has repeatedly tried and failed to overturn.

The 65-year-old fugitive businessman has exhausted legal procedures available to him to fight the government's effort to extradite him to India. The UK government is dealing with a "confidential matter" pertaining to Mallya. There is speculation that Mallya has sought political asylum in the UK.

(With inputs from Agencies)

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Published on: Tuesday, July 27, 2021, 10:41 AM IST
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