Mallya loses bank lawsuit appeal attempt

Vidya Ram London | Updated on July 25, 2018

Vijay Mallya

Vijay Mallya has lost his attempt to appeal the decision of a UK court in a lawsuit brought by a consortium of Indian public-sector banks seeking to recover assets worth £1.145 billion.

The Court of Appeal on Tuesday rejected the attempt to launch an appeal against the ruling of Judge Andrew Henshaw at the Business and Property Courts of the Queen’s Bench Commercial Court earlier this year. The ruling allowed the registration of the Karnataka Debt Recovery Tribunal’s (DRT) 2017 order against Mallya in the UK, and the implementation of a Worldwide Freezing Order that prevented him from removing — or diminishing — his assets in England and Wales.

The May verdict was a legal victory for the 13 banks, whose case runs separately to the attempt by the Indian government seeking Mallya’s extradition to India to face fraud and money-laundering charges.

In January 2017, the DRT’s Bengaluru Bench allowed recovery proceedings against Kingfisher Airlines Ltd and Mallya, directing them to repay ₹6,203 crore to the banking consortium. The initial asset freeze order in London from November gave Mallya a £5,000 weekly allowance to live on, which was increased to just below £20,000 following an application by Mallya’s lawyers.

According to a court order in June, High Court Enforcement Officers or other enforcement agents acting through their authority may enter Mallya’s country residence to search and take over goods belonging to him. Another order, also from June, required him to pay the banks £200,000 by June 5 this year, towards the costs of the legal case against him.

The separate extradition hearing at Westminster Magistrates Court is set to continue next Tuesday.

Published on July 25, 2018

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