London- Embattled businessman Vijay Mallya has instructed his lawyers to file an annulment application against the bankruptcy proceedings initiated by Indian banks in the UK, citing recent statements by Union Finance Minister Nirmala Sitharaman in Parliament.
Justice Anthony Mann of the High Court in London has reserved judgment after hearing three interlinked appeals related to Mallya’s bankruptcy order this week. The case involves a consortium of Indian banks led by the State Bank of India (SBI) seeking repayment of approximately GBP 1.05 billion linked to Mallya’s now-defunct Kingfisher Airlines.
Leigh Crestohl, Managing Partner at Zaiwalla & Co., Mallya’s newly appointed legal firm, argued that the banks’ claims have “an unreal quality” in light of Sitharaman’s statement on December 17, 2024, confirming that INR 14,131.6 crore had been recovered from Mallya’s assets and restored to banks.
Mallya, wanted in India on fraud and money laundering charges, took to social media following Sitharaman’s remarks, asserting that banks and the Enforcement Directorate (ED) had recovered “more than twice the debt” and that he was “entitled to relief.”
The UK High Court heard appeals related to a 2021 bankruptcy order issued against Mallya, including a dispute over whether the banks hold security over certain assets. Mallya’s legal team argued that his debt had been repaid, strengthening his case for annulment.
Mallya remains on bail in the UK while an undisclosed legal matter, believed to be related to an asylum application, is under review. He has consistently denied wrongdoing, claiming that Indian banks are pursuing the same debt in both India and the UK.
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