London, Jun 16: The United Kingdom on Friday ordered embattled liquor Baron Vijay Mallya to pay an amount of 200,000 pounds towards the cost incurred by 13 Indian banks in their legal battle for recovery of alleged dues. Last month, Mallya’s assets were frozen and Indian court’s ruling that a consortium of 13 Indian banks led by State Bank of India (SBI) was entitled to recover funds amounting to nearly 1.145 billion pounds were upheld.
As part of the judgment, the court has also ordered Mallya, 62, to pay costs towards registration of the worldwide freezing order and of the Debt Recovery Tribunal (DRT) of Karnataka’s judgment in Britain. “The court ordered that Mallya pay the banks’ costs. The standard order is that the court will assess those costs unless the parties can otherwise agree to a figure for what should be paid, said a legal expert familiar with the case.
On June 14, while pushing for his extradition from the UK, the Indian authorities will also try to auction the beleaguered liquor baron Vijay Mallya’s Airbus A-319 which remains grounded at the Chhatrapati Shivaji International Airport in Mumbai, according to a Zee Business report.
For the purpose, the liquidator of Karnataka High Court has fixed June 29 and 30 for the online auction of the jet. According to the report, the buyer will also have to pay an additional 28 per cent GST on the auction amount.
The Airbus A-319 – belonging to the chairman of the now defunct Kingfisher Airlines – was seized in December 2013 by the service tax department after Mallya failed to pay dues worth around Rs 1,000 crore. In its bid to recover the dues, the Indian authorities tried to sell the $90 million aircraft several times but failed to do so as it didn’t receive an appropriate bid.
Britain on Monday assured India to fully cooperate in the extradition process of fugitive diamantaire Nirav Modi and Vijay Mallya who are accused in separate multi-crore bank loan defraud cases.