Above: Vijay Mallya
The fugitive business tycoon Vijay Mallya has been asked to pay Rs 1.8 crore to Indian banks by a UK court. This amount, the court said should be compensated to the 13 Indian banks as they incurred it in their legal battle to recover alleged dues from Mallya.
Additionally, the court also ordered Mallya to compensate costs with regard to registration of the worldwide freezing order and of the Debt Recovery Tribunal of Karnataka’s judgment in Britain.
Earlier in May, the UK High Court had refused to revoke an order freezing Mallya’s assets. The Court had upheld a judgement by an Indian court mandating a consortium of 13 Indian banks to recover funds amounting to $1.55 billion from Mallya.
The court ruling had paved the way for consortium of banks to recover funds by selling off Mallya’s assets in UK and Wales.
UK law firm TLT which represented the consortium in the UK High Court had been quoted as saying after the verdict: “In dismissing Dr Mallya’s application, the High Court has demonstrated its willingness to recognise judgments granted by courts in other jurisdictions, giving parties opportunities to enforce their judgments against any assets held here. This case also sets a strong precedent for parties to secure a worldwide freezing order when enforcing judgments against wilful defaulters.”
Mallya had left India in 2016 after the consortium of banks were attempting to recover Rs 9,000 crores which Vijay Mallya took for his airline, Kingfisher Airlines and which was later shutdown.
—India Legal Bureau