London: Fugitive liquor baron Vijay Mallya on Tuesday lost a lawsuit filed by Indian banks in the UK High Court seeking to collect from him over 1.55 billion US dollars. Mallya has been undergoing an extradition trial in a UK court over fraud and money laundering charges by Indian authorities.
Judge Andrew Henshaw upheld an Indian court's ruling that a consortium of 13 Indian banks is entitled to recover funds from the fugitive businessman amounting to nearly 1.55 billion US dollars. Henshaw also refused to overturn a worldwide order freezing Mallya’s assets.
The victory for the banks will enable them to enforce the Indian judgment against Mallya's assets in England and Wales. The worldwide freezing order prevents him from removing any assets from England and Wales to outside. The litigants include the State Bank of India, Punjab National Bank, Bank of Baroda, IDBI Bank among others.
The Crown Prosecution Service, representing the Indian government, had claimed that beleaguered businessman had acquired loans through misrepresentation and had no intentions of repaying them. The claim brought by 13 Indian banks against the 62-year-old businessman was heard in the High Court in the UK last month.