Vijay Mallya now faces bankruptcy proceedings

Figitive Vijay Mallya troubles seems to be multiplying. In a fresh row, UK court has begun bankruptcy proceedings against him. He is facing bankruptcy proceedings in a London court brought by the State Bank of India and 12 other lenders seeking to recover £1.145 billion extended as loans to Kingfisher Airlines that Mallya guaranteed.

The consortium led by the SBI wants court to declare  him bankrupt as part of their efforts to seize his assets in the UK to recover the loans. However, the businessman is planning to contest the fresh petition which, according him, is “not sustainable.”

Earlier, it was reported that Vijay Mallya is set to lose his home in London as the UK court ruled in favour of Swiss bank UBS which had sought to seize the embattled liquor tycoon’s property over non-payment of loans.

The bank had sought repossession of the property at Cornwall Terrace, overlooking Regent’s Park in central London, over the non-payment of a 20.4-million pounds mortgage loan. The property was being used by Mallya as his family home.

The High Court in London has ruled in favour of Swiss banking giant UBS to take possession of Vijay Mallya’s Central London house. The property was referred to in the UK High Court as a “high class home for Dr Vijay Mallya and his family members and United Breweries Group corporate guests”.

The Westminster court in London had already ordered the extradition of Vijay Mallya, wanted in India for alleged fraud and money laundering charges amounting to an estimated Rs 9,000 crores.

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