According to a report in Hindustan Times, Vijay Mallya is facing bankruptcy proceedings in a London court brought by the State Bank of India and 12 other lenders seeking to recover £1.145 billion extended as loans to Kingfisher Airlines that Mallya guaranteed.
The consortium led by the State Bank of India wants court to declare Vijay Mallya bankrupt as part of their efforts to seize his assets in the UK to recover the loans. However, the businessman is planning to contest the fresh petition which, according him, is “not sustainable”, the newspaper reported.
Asked by The Sunday Times how he felt, Mallya replied: “Nothing different to what has been happening over the past four years since the (Indian) government began hounding me.”
Earlier, it was reported that Vijay Mallya is set to lose his home in London as the UK court ruled in favour of Swiss bank UBS which had sought to seize the embattled liquor tycoon's property over non-payment of loans.
The bank had sought repossession of the property at Cornwall Terrace, overlooking Regent's Park in central London, over the non-payment of a 20.4-million pounds mortgage loan. The property was being used by Mallya as his family home.
The High Court in London has ruled in favour of Swiss banking giant UBS to take possession of Vijay Mallya’s Central London house.
The property was referred to in the UK High Court as a "high class home for Dr Vijay Mallya and his family members and United Breweries Group corporate guests".
While a trial in the case has been set for May next year, the High Court ruled on the UBS' application to strike out parts of the defence and found substantially in favour of the bank.
"UBS is pleased with the decision. Given that proceedings are ongoing, it would be inappropriate to comment further," UBS had then said.
In his judgment following a two-day hearing last month, Judge Chief Master Marsh concluded that he can see no basis upon which the defendants should be given an opportunity to amend their defence.
The Westminster court in London had already ordered the extradition of Vijay Mallya, wanted in India for alleged fraud and money laundering charges amounting to an estimated Rs 9,000 crores.