Fugitive liquor businessman Vijay Mallya has been allowed by the London High Court to use £ 1.1 million from the court-held amount for legal and living expenses. Let me tell you that Vijay Mallya had demanded a sum of money from his confiscated property for the expenditure. Let me tell that Vijay Mallya owes more than about 9 thousand crores rupees to many Indian banks including State Bank of India (SBI). A consortium of Indian banks has been formed under the aegis of State Bank of India to recover debt from Vijay Mallya.
What did the london court say
No attempt to bring Vijay Mallya back to India has been successful yet. Judge Nigel Burnett of the Deputy Court of Bankruptcy and Company Affairs presided over the hearing regarding the withdrawal of money from the court fund office. The hearing took place under the insolvency action being taken by Indian banks led by the State Bank of India (SBI) for non-payment of debt. The order allowed the former Kingfisher Airlines chief to withdraw money from the court to meet his expenses and legal expenses in the ongoing action against the bankruptcy petition.
Money spent will be investigated
During the hearing of the case, the judge said that while Vijay Mallya has been successful in two legal aspects so far, the petitioner Indian Bank has also been successful to a great extent in presenting his case against Mallya’s application. The court said that it is natural to incur legal expenses on hearing the application. So right now Mallya will be given money from the court fund to make this expenditure. However, the court also said that after the verdict in the bankruptcy case, where and in what items Vijay Mallya has spent this money will be investigated.
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The debt of these banks including SBI is outstanding
Explain that in this case, State Bank of India is leading 13 banks from whom Mallya did not repay the loan and fled to London. These include Bank of Baroda, Corporation Bank, Federal Bank Limited, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India, JM Financial Asset Reconstruction Company Incorporated. These banks initiated action against Vijay Mallya in December 2018.