Mallya faces bankruptcy proceedings in UK court
New Delhi, Dec 17: In fresh trouble for Vijay Mallya is facing bankruptcy proceedings in a London court brought by the State Bank of India and 12 other lenders seeking to recover 1.145 billion pounds, which was given as loan to Kingfisher Airlines.
The lenders had won in the commercial court of the high court on May 8, when Mallya's applications to set aside a ruling of India's Debt Recovery Tribunal. In June the business and property court of the high court allowed searches and seizure of goods at his two properties. However his legal team argued that the ruling did not have the effect of triggering any enforcement.
This action by the SBI relates to declaring Mallya bankrupt as part of the efforts to seize his assets in the UK to recover loans. Mallya would however contest the action sating that the same is not sustainable.
Mallya, it may be recalled had last week lost his bid to prevent extradition to India. He was given 14 days to appeal against the ruling, which is now before the Home Secretary as per the provisions laid down in the UK Extradition Act of 2003.