Vijay Mallya loses UK lawsuit over Rs 10,000 crore in Indian claims; ruling to benefit IDBI Bank, Modi and the BJP

Vijay Mallya has lost a lawsuit in the UK High Court, filed by a clutch of Indian banks seeking to recover over Rs 10,000 crore. The London court has reportedly backed India’s claims that the former liquor baron is a wilful defaulter. The claim was put forth by 13 Indian lenders, including the IDBI Bank Ltd. The ruling comes as a big victory for the Narendra Modi-led government’s fight against corruption, reported CNNNews18. The timing of the ruling couldn’t be better– it gives Prime Minister Modi and the BJP enough ammunition to take on their critics, particularly ahead of the crucial Karnataka assembly elections. The southern state goes to polls on 12 May.

#BREAKING Massive blow to Vijay Mallya. Mallya loses U.K lawsuit of over $1.5bn in Indian claims. @bhupendrachaube with more details on the story. #Faceoff with @Zakka_Jacob pic.twitter.com/7u4Ll0BosH

— News18 (@CNNnews18) May 8, 2018

On Tuesday, Judge Andrew Henshaw refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that the consortium of 13 Indian banks were entitled to recover funds amounting to nearly Rs 10,000 crore. The victory for the banks will enable them to enforce the Indian judgment against Mallya’s assets in England and Wales. The claim relates to a judgment of the Debt Recovery Tribunal (DRT) in Karnataka, which concluded that Mallya was “liable” to pay the banks a sum of over Rs 6,000 crore plus interest. The litigation in the Queen’s Bench Division of the commercial court in England’s High Court of Justice listed the State Bank of India (SBI), Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank (PNB), State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd as the applicants. Mallya and related concerns – Ladywalk LLP, Rose Capital Ventures Ltd and Orange India Holdings – were listed as respondents. Extradition trial Mallya is fighting several lawsuits in the UK and in India, battling allegations of fraud and money-laundering. A UK court, on 27 April, said it will  set a date for the final verdict in the Vijay Mallya extradition case on 11 July. The announcement, by the Westminster Magistrates’ Court in London, came after it accepted evidence against the embattled liquor tycoon. The UK court, which admitted evidence from the Central Bureau of Investigation (CBI), did not receive evidence related to alleged money laundering, reported NDTV. Chief Magistrate Emma Arbuthnot of the Westminster Magistrates’ Court, who considered some additional material sought from the Crown Prosecution Service (CPS), arguing on behalf of the Indian government, and heard arguments, said the court will decide on a date for the final verdict in the case on 11 July. If the judge rules in favour of the Indian government, the UK home secretary will have two months to sign Mallya’s extradition order. However, both sides will have the chance to appeal in higher courts in the UK against the Magistrates’ Court verdict. With inputs from PTI