Fugitive businessman Vijay Mallya has withdrawn his application to annul a UK bankruptcy order, allowing court-appointed trustees to continue pursuing his assets on behalf of Indian banks. The decision
comes even as Mallya took to social media to criticise the Public Sector Banks (PSBs) for allegedly failing to acknowledge the substantial recoveries already made in India.
In a post on X (formerly Twitter), Mallya said, “The Indian Public Sector Banks who claim monies from me as a guarantor should be ashamed that they have not yet submitted an accurate statement of account of recoveries made, despite the Union Finance Minister clearly stating that Rs 14,100 crores have been restored to the very same banks.”
Mallya, who remains wanted in India on fraud and money laundering charges, has long argued that the banks’ debts have already been repaid through asset recoveries made by Indian authorities.
UK court proceedings continue
Mallya’s decision to discontinue his annulment bid means the Trustee in Bankruptcy can continue tracing and realising his assets.
“The Trustee in Bankruptcy will be able to continue with their work… without any hindrance that this application might have caused,” said UK law firm TLT LLP, representing the consortium of Indian banks led by the State Bank of India (SBI).
Earlier this year, Justice Anthony Mann of the UK High Court had ruled that the bankruptcy order against Mallya “stands”, rejecting his arguments that the debts had been settled.
Ongoing investigations
The bankruptcy proceedings stem from a 2017 Debt Recovery Tribunal (DRT) judgment in India that held Mallya personally liable for loans extended to his now-defunct Kingfisher Airlines. The consortium of 17 banks, led by SBI, is seeking to recover over Rs 9,000 crore, excluding interest and penalties.
Indian agencies, led by the Enforcement Directorate (ED), have so far recovered and restored assets worth over Rs 14,131 crore to public sector banks, exceeding the principal loan amount. The ED achieved this through extensive attachment, liquidation, and transfer of properties linked to Mallya and his companies under the Prevention of Money Laundering Act (PMLA).
