Greeva Garg–
A Court in the United Kingdom has issued a bankruptcy order against Indian fugitive businessman Vijay Mallya.
This order by the UK Court will pave the way for a consortium of Indian banks led by the State Bank of India (SBI) to pursue a worldwide freezing order on Mallya’s assets in a bid to seek repayment of debts owed by the liquor baron’s now-defunct Kingfisher Airlines.
“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.
Also Read: London Court refuses Vijay Mallya Plea for INR 7.8 crore from frozen funds
“I have to decide if there is a real prospect of payment of petition debt in full within a reasonable time. There is insufficient evidence that [Mallya’s asset realisations in India] will pay the debt in full within a reasonable time,” Judge Briggs further said relating to arguments about the restoration process in India following a Prevention of Money Laundering Act (PMLA) Court order for the attachment of Mallya’s assets.
Mallya was being chased by the Indian criminal agencies for fraud and money laundering charges against him related to Rs.900 crore alleged loan fraud.
Mallya, while on bail in the UK, filed a confidential legal matter, largely believed to be regarding an asylum application, which is resolved in connection with the unrelated extradition proceedings.
Earlier in the matter, an application seeking permission for appeal presented by Mallya before the UK Court was turned down by Judge Briggs, stating that there was no real prospect of success of the appeal.