Vijay Mallya loses UK bankruptcy appeal over £1 billion debt to Indian banks

Fugitive Indian businessman Vijay Mallya has suffered another major legal setback in the United Kingdom. On Tuesday, London's High Court dismissed Mallya’s appeal against a bankruptcy order related to over £1 billion ($1.28 billion) owed to a consortium of Indian banks, including the State Bank of India.

The case stems from the 2012 financial collapse of Kingfisher Airlines, a now-defunct airline once owned by Mallya. A group of Indian lenders secured a judgment in 2017 against Mallya in India for the outstanding debt, which was later registered in the UK. In 2021, the London High Court issued a bankruptcy order, which Mallya has since contested.

At a hearing in February this year, Mallya’s legal team argued that the banks had already recovered a significant portion of the assets, essentially settling the debt. However, Judge Anthony Mann rejected the argument and upheld the bankruptcy order. In his written statement, the judge emphasized that "the bottom line... is that the bankruptcy order stands."

The 68-year-old tycoon, who remains in Britain, has been fighting multiple legal battles in both the UK and India. Besides the bankruptcy case, Mallya is also resisting extradition to India, where he faces charges of fraud and financial mismanagement related to Kingfisher Airlines.

Although the UK had approved his extradition in 2020, the order has yet to be enforced. Judge Mann remarked in his ruling that Mallya “is still resisting extradition on other bases which have yet to be resolved.”

Mallya, a former co-owner of the Force India Formula One team and once dubbed the “King of Good Times,” has not responded publicly to the latest ruling. His legal representatives have also not issued a statement.