Controversial businessman Vijay Mallya who is facing allegations of bank fraud that amounts to around Rs 9,000 was declared as bankrupt by a court in the United Kingdom.
The declaration from the court should be considered a shot in the arm to the efforts made by the SBI led consortium of banks which is not leaving any stone unturned to seek orders to freeze the assets and properties owned by Vijay Mallya.
It is said that Michael Briggs, the Honorable Judge at the Companies Court declared Vijay Mallya as bankrupt on Monday while hearing a petition. The hearing took place virtually given the Covid situation.
The Court orders had paved a way for the freezing of assets and properties owned by Vijay Mallya in India and other countries as well.
After the court declared him bankrupt, Vijay Mallya said that he would knock on the doors of the High Court challenging the verdict of the lower court.
However, he faced a big shock in this regard as the court didn’t permit him to move the higher court concerning the bankruptcy declaration.
Vijay Mallya took to Twitter to express his dissatisfaction over the attachment of assets more than his debt amount. He even alleged that banks are asking the Court to declare him as a bankrupt as the banks should return the money to the Directorate of Enforcement.
“ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores. They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more. Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible,” Vijay Mallya’s tweet reads.
The consortium of banks led by SBI have been waiting for July 26 as the Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs earlier in May this year said the final hearing will be done on July 26.
Hearing the arguments of both sides, the Court declared Vijay Mallya bankrupt, making the process of freezing his assets a bit easier. The long wait for the banks has come to an end.
