London, July 26: In a major setback for Vijay Mallya, the London court on Monday declared the fugitive businessman bankrupt. The verdict will help the consortium of Indian banks led by the State Bank of India in recovering debt from loans worth Rs 9,000 crore by seizing his assets. Notably, the loans were sanctioned to Mallya's now-defunct Kingfisher Airlines. Vijay Mallya Extradition Case: UK Court Declares Fugitive Businessman Bankrupt.

According to reports, the fugitive businessman will appeal against the verdict. The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in their favour. In May this year, the London High Court had upheld an application to amend the bankruptcy petition of the banks. Vijay Mallya, Fugitive Businessman, Loses Bankruptcy Petition Amendment High Court Battle in UK; SBI Step Closer To Recover Money From Him.

Meanwhile, The 65-year-old businessman remains on bail in the UK while a "confidential" legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings. Mallya's barrister Philip Marshall sought a stay as well as an adjournment of the order while legal challenges remain ongoing in the Indian courts. However, the requests were turned down by the judge, who concluded that there was "insufficient evidence" that the debt will be paid back to the petitioners in full within a reasonable period of time.

Last year in May, Mallya lost his application seeking leave to appeal in the UK Supreme Court after the London High Court declined to entertain his appeal challenging the extradition order to India. Mallya left India hours before the Indian banks approached the Supreme Court against him. The ED has attached many properties of Mallya in the last few years under the Prevention of Money Laundering Act. Mallya is being investigated by the CBI and the Enforcement Directorate in connection with the loan fraud case.

(With inputs from PTI)

(The above story first appeared on LatestLY on Jul 26, 2021 09:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website