India Abroad

Vijay Mallya Directed To Pay Rs 1.8 Crore To Indian Banks By UK Court For Legal Expenses

DIVYIA ASTHANA | 0
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| June 16 , 2018 , 09:30 IST

Absconding Vijay Mallya being pursued in the UK by a consortium of 13 Indian banks seeking loan recovery has been ordered by the UK High Court to pay Rs 1.8 crore (200,000 pounds) to the banks towards the cost incurred by them in their legal battle to recover their dues from him.

"The court ordered that Mallya pay the banks' costs. The standard order is that the court will assess those costs unless the parties can otherwise agree a figure for what should be paid," said a legal expert familiar with the case.

According to the judgement, 62-year-old Mallya has also been ordered to pay costs towards registration of the worldwide freezing order as well.

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Judge Andrew Henshaw had last month on May 8 refused to overturn a worldwide order freezing Mallya's assets and upheld an Indian court's ruling that the consortium of 13 banks, led by State Bank of India (SBI) were entitled to recover funds of nearly 1.145 billion pounds.

"The First Defendant's (Mallya) application for permission to appeal is refused. Any further application for permission to appeal should be made to the Court of Appeal to be dealt with by a judge of that court," the judgement noted.

Mallya, who is also fighting an extradition to India case based on fraud worth Rs 9,000 crore subsequently filed an appeal notice at the Court of Appeal. Mallya and his lawyers have claimed that the criminal charges against him are 'without substance' and 'politically motivated'. They have also challenged the case on human rights grounds, based on the conditions of the Arthur Road Jail in Mumbai where Mallya would be held after extradition.

The consortium of Indian banks includes State Bank of India, Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd .