Vijay Mallya faces bankruptcy over Rs 10,600 crore owing debts to 12 Indian banks

As many as twelve state-owned banks are petitioning for ex-billionaire Vijay Mallya to be declared bankrupt over 1.15 billion pounds (Over Rs 10,000 crore) in unpaid debts.

The banks and an asset restructuring company, led by the State Bank of India, have taken the absconding liquor baron to a London court where lawyers told that Mallya has not paid anything toward the debt.

Mallya, who is the founder of the now defunct Kingfisher Airlines Ltd., faces extradition to India to face fraud charges. He was permitted to appeal the decision, which will be heard in February.

Mallya has lived in the U.K. for around 20 years owing to which the bankruptcy petition was brought in the U.K. Besides, he also owns a lot of assets in the country, told lawyer Marcia Shekerdemian.

Mallya owns a townhouse in London's Regent's Park worth more than 30 million pounds (nearly Rs 280 crore), a mansion in Hertfordshire worth around 13 million-pound (Over 100 Rs crore), three yachts and shares in the Force India Formula One Team Ltd.

Mallya’s lawyer Philip Marshall said in written submissions said that the petition for bankruptcy should be dismissed because the banks are pursuing the same debt via Indian courts on a diametrically opposite basis.

Marshall further said, “At the very least, the hearing should be adjourned until the determination of his client’s (Mallya) appeal against the extradition order against him.”

Mallya didn’t respond to a request for comment sent to him and his attorney right away.

He had been arrested on an extradition warrant back in April 2017 after 17 banks accused him of willfully defaulting on more than 91 billion rupees ($1.3 billion) in debt gathered by Kingfisher Airlines, which shut down in 2012.

Also Read: Supreme Court Adjourns Fugitive Liquor Baron Vijay Mallya’s Plea

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