Kingfisher tycoon Vijay Mallya loses bankruptcy appeal
Vijay Mallya, the fugitive former head of India’s United Breweries and United Spirits, has lost his appeal against being declared bankrupt.
Mallya, who fled to Britain in 2016 to avoid arrest and who has been convicted of fraud and money laundering in India, was found by the court to owe $1.28 billion to a group of Indian banks following the collapse of his Kingfisher Airlines in 2012.
The banks obtained a judgement against him in 2017, and Mallya alleges that the Indian financial authorities have seized assets worth almost double the original amount.
However, his appeal was thrown out by Judge Anthony Mann, who said in his ruling that “the bottom line …. Is that the bankruptcy order still stands.”
In 2020, Mallya lost his final legal appeal against extradition to India, where he faces immediate jailing.
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Asylum in Britain
According to Reuters, Judge Mann noted that the extradition order “has still not been enforced” because “apparently Mallya is still resisting extradition on other bases which have yet to be resolved.”
Those grounds are thought to be a plea for asylum in Britain because Mallya believes his case in India to be politically motivated and that he would not receive a fair trial.
After losing the extradition appeal, one of Mallya’s legal team claimed that he “would never be extradited”.
Losing the appeal against bankruptcy means the door is now open for creditors such as Diageo and United Spirits to pursue Mallya.
Combined, they claim he owes them some £250 million for illegal activities while still running USL and for breach of agreements following its takeover by Diageo in 2012 and 2013.
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