Fugitive Indian businessman Vijay Mallya has lost his appeal against a bankruptcy order issued by a UK High Court in a case involving over ₹11,101 crore in unpaid debts to a consortium of Indian banks, including the State Bank of India (SBI). The ruling upholds a 2021 decision that declared Mallya bankrupt in the UK, despite his legal team’s arguments that the debts had effectively been settled through asset recoveries.
The appeal was dismissed by Judge Anthony Mann on Tuesday, who stated, “The bottom line is that the bankruptcy order stands,” according to a Reuters report. Mallya had filed the appeal following a February hearing this year, during which his lawyers claimed the banks had already recovered assets equivalent to the debt owed.
Background of the Case
Vijay Mallya has been residing in Britain since fleeing India in 2016 amid mounting legal troubles. The bankruptcy proceedings stem from a 2017 Indian court judgment in favour of a group of banks led by SBI. The banks had granted loans to Mallya’s now-defunct Kingfisher Airlines, with Mallya personally guaranteeing the debt.
The bankruptcy order in the UK was based on that Indian court ruling, allowing creditors to pursue Mallya’s assets overseas. Mallya’s legal team, however, contended that asset recoveries made by Indian banks had already addressed much of the liability — a claim the UK court did not accept.
Despite the legal setback, Mallya’s representatives said he intends to continue challenging the bankruptcy decision. “He will continue to seek to overturn the bankruptcy order,” his lawyers said in a statement following the ruling.
Extradition Proceedings Still Unresolved
In addition to the bankruptcy case, Mallya is also fighting extradition to India to face fraud and financial misconduct charges related to the collapse of Kingfisher Airlines. Although he lost an appeal against extradition in 2020, the order has yet to be enforced.
Judge Anthony Mann also addressed the extradition issue in his written judgment, noting that the order “has still not been enforced” and that Mallya is continuing to resist extradition on other legal grounds that remain unresolved.
Once a prominent liquor baron and co-owner of the now-defunct Formula One team Force India, Mallya has spent the last several years entangled in legal battles in the UK and India. The recent court ruling marks another significant defeat in his prolonged fight against financial accountability and legal repatriation.
Sources By Agencies
