The UK High Court has ordered embattled liquor tycoon Vijay Mallya to pay a minimum of 200,000 pounds towards the costs incurred by 13 Indian banks in their legal battle to recover alleged dues.
Last month, Judge Andrew Henshaw had refused to overturn a worldwide order freezing vijay Mallya’s assets and upheld an Indian court’s ruling that a consortium of 13 Indian banks led by State Bank of India (SBI) were entitled to recover funds amounting to nearly 1.145 billion pounds.
- UK court asks Vijay Mallya to pay Indian banks at least Rs 1.8 crore.
- Judge Andrew Henshaw had refused to overturn a worldwide order freezing Mallya’s assets.
- Mallya remains on bail since his arrest on an extradition warrant in April 2017.
Mallya lost a lawsuit filed in the United Kingdom by 13 Indian banks seeking to collect more than $1.55 billion (Rs 10,385 crore) from him amid allegations that he committed massive fraud. The 62-year-old businessman is fighting a number of lawsuits in the UK and India related to fraud and money-laundering allegations.
He is also fighting the Central Bureau of Investigation’s attempts to extradite him from the UK. On April 27, the Westminster court hearing that case most of the evidence the CBI had submitted against Mallya.
As part of the judgment, the court has also ordered Mr Mallya, 62, to pay costs towards registration of the worldwide freezing order and of the Debt Recovery Tribunal of Karnataka’s judgment in Britain.
The court ordered that Mallya pay the banks’ costs. The standard order is that the court will assess those costs unless the parties can otherwise agree a figure for what should be paid,? said a legal expert familiar with the case.
Meanwhile, Mallya’s defence lawyers have claimed that the criminal charges against their client are “without substance” and “politically motivated”. The defence has further raised a question on the conditions at Arthur Road Jail in Mumbai, where the business is likely to be held once extradited to India.
The businessman, who has been in the United Kingdom since March 2016, has said he would not return to the country. India’s Ministry of External Affairs submitted an extradition request to the United Kingdom in February 2017 after Mallya made his self-imposed exile clear. The request was made on the basis of an extradition treaty signed between the countries in 1992.
The consortium of 13 Indian banks which have been entitled to recover their dues from Mallya are, State Bank of India, Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd.
The final hearing in the extradition case is likely to take place on July 31, which was earlier scheduled for July 11 at Westminster Magistrates’ Court.