World News

Mallya loses law suit in London but continues to live on Rs 16 lakh/week

The Hush Post: Business tycoon Vijay Mallya, wanted in India owing to loan defaults and money-laundering still lives on Rs 16 lakh per week or 20,000 pounds in England. Though, the good news is he has lost a law suit filed by Indian Banks in the UK High Court. He owes more than USD 1.55 billion or 1.04 lakh crore to various banks.

A consortium of 13 Indian banks, are now entitled to recover funds from Vijay Mallya. On Tuesday, Judge Andrew Henshaw refused to overturn a worldwide order freezing Vijay Mallya’s assets.
With this, the banks can now enforce the Indian judgment and sell the assets of Mallya in England and Wales so as to recover the dues.

The freezing order prevents Mallya from removing any assets from the UK up to that value or to dispose of deal with or diminish the value of his assets.

The asset freeze order had forced the businessman to live on 5,000 pounds a week, but his allowances were increased to roughly 20,000 pounds a week earlier this year, lawyers for said after the hearing.

The 62-year-old businessman left India in 2016 after the banks attempted to recover nearly Rs. 9,000 crores in unpaid loans to Kingfisher Airlines which he started in 2005. Seven years later he shut the airlines.

A London court is hearing the case of Indian investigators for the business tycoon’s extradition to face trial in India.

More than a year ago, Mallya was arrested in London on a warrant issued by Indian authorities. He was accused of conspiring to swindle the IDBI Bank through a Rs. 91 billion-rupee loan to Kingfisher Airlines.

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