Vijay Mallya loses $1.5 bn UK lawsuit, Indian lenders can sell his assets in England

In a massive setback Vijay Mallya has lost a UK lawsuit. The court has ordered a worldwide freezing assets that will prevent him from removing — or diminishing — his assets in England and Wales.

Judge Andrew Henshaw, in London, said the lenders, including IDBI Bank Ltd., can enforce an Indian court ruling that relates to allegations that Mallya willfully defaulted about $1.4 billion in debt for his now-defunct Kingfisher Airlines Ltd. Henshaw also refused to overturn a worldwide order freezing Mallya’s assets.

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The lenders – a consortium of 13 Indian banks – will allow them to enforce the underlying judgment by the Indian debt recovery tribunal immediately. The tribunal had also concluded that Mallya owed the banks a sum of Rs 6,000 crore plus interest.

This has come as a second blow to liquor baron Vijay Mallya in a single day.

Earlier on Tuesday, a Delhi court issued fresh directions to attach the properties of businessman Vijay Mallya, who was declared a proclaimed offender for evading summons in a money laundering case related to FERA violations.

Chief Metropolitan Magistrate Deepak Sherawat issued the order after advocate N K Matta, the special public prosecutor appearing for the Enforcement Directorate (ED), told the court that the agency had not received any reply from the authorities responsible for the attachment.

The court took Matta’s submission on record and posted the matter for further hearing on July 5.

The court had on March 27 directed the attachment through the Police Commissioner, Bengaluru, and had sought a report by Tuesday regarding the compliance of the order.

The order was passed on an application moved by the ED seeking attachment of Mallya’s properties.

The court had on January 4 declared Mallya a proclaimed offender for evading summons in a FERA violation case after noting that he failed to appear before it despite repeated summonses.

(with inputs from Agencies)


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