Embattled liquor tycoon Vijay Mallya, undergoing an extradition trial in a UK court over fraud and money laundering charges by Indian authorities, today lost a lawsuit filed by the Indian banks in the UK High Court seeking to collect from him more than USD 1.55 billion.
Judge Andrew Henshaw refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that a consortium of 13 Indian banks were entitled to recover funds amounting to nearly USD 1.55 billion (1.145 billion pounds).
The victory for the banks will enable them to enforce the Indian judgment against Mallya’s assets in England and Wales. The worldwide freezing order prevents him from removing any assets from England and Wales up to that value or to in any way dispose of, deal with or diminish the value of his assets in or outside of this jurisdiction, up to the same value.
The claim brought by 13 Indian banks against the 62-year-old businessman was heard in the High Court last month.
The litigation in the Queen’s Bench Division of the commercial court in England’s High Court of Justice lists the State Bank of India, Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu &a Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd as the applicants. PTI