New Delhi: Close on the heels of his extradition orders, beleaguered entrepreneur Vijay Mallya could be in fresh trouble as he faces bankruptcy proceedings in a London court as the State Bank of India (SBI) and 12 other lenders seek to recover £1.145 billion given as loans to Kingfisher Airlines, said a media report on Monday. (Also read: ‘My Statement on Mallya Taken Out of Context,’ Says Gadkari) Also Read - Beware of KYC Fraud: SBI Alerts Customers, Know How to Protect Yourself From Online Fraud
The SBI-led consortium wants the court to declare Mallya bankrupt as part of their efforts to seize his assets in the UK to recover the loans. However, the businessman is planning to contest the fresh petition which, he said, is “not sustainable”, as per Hindustan Times. Also Read - UK Court Denies Release of Substantial Funds For Vijay Mallya's Legal Fees
Speaking to The Sunday Times on how he felt, Mallya said, “Nothing different to what has been happening over the past four years since the (Indian) government began hounding me.” Also Read - Bank Fraud: Hyderabad-based Co cheats SBI, Other Banks for ₹ 4,736 Crore
Reports had said that Mallya was set to lose his London home as the UK court ruled in favour of Swiss bank UBS which had sought to seize the liquor tycoon’s property over non-payment of loans.
The bank had sought repossession of the property at Cornwall Terrace, overlooking Regent’s Park in central London, over the non-payment of a 20.4-million pounds mortgage loan. The property was being used by Mallya as his family home.
The property was referred to in the UK High Court as a “high class home for Dr Vijay Mallya and his family members and United Breweries Group corporate guests.”
“UBS is pleased with the decision. Given that proceedings are ongoing, it would be inappropriate to comment further,” UBS had then said.
In his judgment following a two-day hearing last month, Judge Chief Master Marsh concluded that he could see no basis upon which the defendants should be given an opportunity to amend their defence.
The Westminster court in London had ordered the extradition of Vijay Mallya, wanted in India for alleged fraud and money-laundering charges amounting to an estimated Rs 9,000 crore.