The day after: Broke Mallya rues ED attaching more assets than debt!
Virendra Pandit
New Delhi: A day after London High Court declared him bankrupt, fugitive businessman Vijay Mallya rued that India’s Enforcement Directorate (ED) is attaching his assets worth Rs. 14,000 crore against a debt of only Rs. 6,200 crore.
He also charged the Indian banks with making him bankrupt as they have to return money to the ED, media reported on Tuesday.
“ED attach my assets worth 14K crores at the behest of Govt Banks against debt of 6.2K crores. They restore assets to Banks that 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,” Mallya tweeted on Monday.
On Monday, the London High Court pronounced him bankrupt and a consortium of Indian banks, led by the State Bank of India (SBI), won the case related to recovering debt from loans paid out to Mallya’s now-defunct Kingfisher Airlines.
The crucial judgement has cleared the decks for the seizure of Mallya’s assets. He was refused permission to appeal against the HC order.
“As at 15.42 [UK time], I adjudicate Dr Mallya bankrupt,” Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court.
The London High Court had, during a virtual hearing in May, upheld an application to amend the banks’ bankruptcy petition of 2018, in favour of waiving their security over the controversial businessman’s assets in India.
Reacting to the issue, Foreign Secretary Harsh Vardhan Shringla said that India has made its best case on Mallya being wanted for economic offences. London has assured the Government of India about his extradition to face charges of fraud and money laundering related to unpaid loans to his now-defunct Kingfisher Airlines.
