India Abroad

UK Court Orders Recovery Of Loan Amount From Mallya's London Assets

JAVED SAIFI | 0
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| July 5 , 2018 , 19:12 IST

A UK High court has issued an enforcement order in favour of a consortium of Indian banks to recover the loan amount from liquor baron Vijay Mallya who is involved in money laundering case of Rs 9000 crores.

The order will allow UK High Court Enforcement Officer to enter Vijay Mallya properties in Hertfordshire, London. It permits the officer and his agent's entry to Ladywalk and Bramble Lodge in Tewin, Welwyn, where Mallya is currently based. However, it is not an instruction to enter, which means the banks have the option to use the order as one of the means to recover estimated funds of around £1.145 billion, as per reports.

Also Read: Vijay Mallya Releases Letters Sent To The PM And the Finance Minister

According to media sources the UK high court order grants permission to banks to consider all the enforcement options available to them.

As per reports, the order relates to the UK’s Tribunal Courts and Enforcement Act 2007 and follows a UK High Court ruling in May, which refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that the Indian banks were entitled to recover funds. It marked the first recorded case of a judgment of the Debt Recovery Tribunal (DRT) in India being registered by the English High Court, setting a legal precedent.

But now it is a win situation for all 13 banks that Vijay Mallya defaulted. They include Bank of Baroda, State Bank of India, Federal Bank Ltd, Corporation Bank, Indian Overseas Bank, IDBI Bank, Punjab and Sind Bank, Jammu and Kashmir Bank, Punjab National Bank, UCO Bank, United Bank of India, State Bank of Mysore and JM Financial Asset Reconstruction Co. Pvt Ltd.

Vijay Mallya had issued a five-page media statement on June 26 in which he mentioned that he had made two settlement offers of Rs 4,000 crores (plus the assignment of a claim in a pending suit of approximately Rs. 2,000 crores) against the outstanding Principal amount of approximately Rs. 5,000 crores to the banks when proceedings were filed against him in the Supreme Court of India on 29th March 2016 and 6th April 2016.