It seems that State Bank of India (SBI) is all set to tighten the noose around fugitive businessman Vijay Mallya and is ready to begin bankruptcy proceedings against Mallya in the United Kingdom to create more legal pressure on him for the recovery of loans, reports the Economic Times citing two people aware of the development. Worth mentioning here is that Mallya’s bankrupt Kingfisher Airlines owes several Indian banks around Rs 9,000 crore.
The financial daily quoted one person as saying, “We will fight tooth and nail to recover the bank’s money. Soon, Mallya will be taken to the bankruptcy court in the UK … We hope to recover a substantial amount once we are done with all the legal action against Mallya.” Many experts are of the view that any bankruptcy action against the disgraced tycoon will also be a moral victory for the banks.
However, no bankruptcy plea has been filed yet. Legal experts on both sides were made aware that it could happen soon. “Bankruptcy action against Mallya is in the works and you will see the result very soon,” one person told the ET.
The Enforcement Directorate (ED), meanwhile, in 2016 declared Mallya a proclaimed offender under Section 82 of the Criminal Procedure Code.
To be noted, the beleaguered liquor tycoon lost a lawsuit earlier this month filed by 13 Indian banks in the UK High Court seeking to collect from him more than USD 1.55 billion (about Rs 10,385 crore).
Mallya was arrested twice last year in London and released on bail. It is worth mentioning here that the Central Bureau of Investigation (CBI) is leaving no stone unturned to extradite Mallya him from the UK.
On Monday, Union External Affairs Minister Sushma Swaraj said that Prime Minister Narendra Modi had told British Prime Minister Theresa May that Indian prisons for Mallya will be same as those that housed Indian national leaders Mahatma Gandhi and Jawaharlal Nehru.
Swaraj revealed that PM Modi and his UK counterpart were discussing the problem of Indian economic offenders such as Vijay Mallya and Lalit Modi based in the United Kingdom.
Source: ETNOWNEWS, May 29,2018