Following London High Court declaring businessman Vijay Mallya as bankrupt, the fugitive said the Enforcement Directorate is attaching his assets worth Rs 14,000 crores against debt of Rs 6,200 crores. He levelled the allegation that the banks are making him bankrupt since they have to return money to the ED.
“ED attach my assets worth 14,000 crores at (the) behest of Govt Banks against debt of 6.2 thousand crores. They restore assets to Banks who (sic) recover 9K crores in cash and retain security over 5,000 crores more. Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible,” Mallya said in a tweet on 26 July.
Vijay Mallya was declared bankrupt by the London High Court yesterday, with a consortium of Indian banks led by the State Bank of India (SBI) winning the case related to recovering debt from loans paid out to Mallya’s now-defunct Kingfisher Airlines.
The verdict opens the doors for Mallya’s assets to be seized. Mallya said he would appeal against the HC order, but he was refused permission for the same.
“As at 15.42 [UK time], I 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.
During a virtual hearing in May, the London High Court had upheld an application to amend the banks’ bankruptcy petition, in favour of waiving their security over the embattled businessman’s assets in India. The petition dated back to 2018.
Meanwhile, Foreign Secretary Harsh Vardhan Shringla reacted to the move and said that India has made its best case on Vijay Mallya being wanted for economic offences and the Indian government has the best assurance from the UK authorities of his extradition to face charges of fraud and money laundering related to unpaid loans to his now-defunct Kingfisher Airlines.