UK account stays frozen, neither Vijay Mallya, nor banks get £ 259k – Times of India

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UK account stays frozen, neither Vijay Mallya, nor banks get £ 259k – Times of India

LONDON: Fugitive economic offender

Vijay Mallya

has failed to get a court order freezing £ 259,000 (Rs 2.34 crore) in his UK bank account overturned despite being irreconcilable, thwarts his ability to meet his living and legal expenses and his human rights violations.

But the 63-year-old has managed to stop the 13 Indian banks to whom he now owes around Rs 11,000 crore (£ 1.142 billion) from getting his hands on the money till at least 2020.

A hearing on whether to make an interim third party credit order on Mallya’s UK

ICICI bank

account final – which would have forced ICICI to handover the £ 259,000 to the bank immediately – has been adjourned until after the hearing of Mallya’s

bankruptcy

petition, scheduled in December

The bank had received the £ 259,000 on January 14, 2019 on the interim third party loan order.

At a hearing on April 3, the bank had applied to make the order “final”, arguing they were Mallya’s biggest creditor and he was running up debts whilst “continuing to lead a lavish lifestyle”.

But Mallya’s barrister, John Brisby QC, applied to the interim debt order set aside and to oppose it was “final”, arguing that £ 259,000 was “peanuts” relative to the judgment credit and the banks had on September 11, 2018, Mallya’s £ 1.6 billion (Rs 14,000 crore) settlement offer in the Karnataka High Court, which he said was a judgment debt against effective security and all of the money paid off. his creditors Nigel Tozzi QC, representing the banks, said the banks did not accept that the debt was secured in India and when and if the offer was approved uncertain.

MasterCook (the judge) said: “I adjourn the hearing of the application for a third party debt order to the hearing of the bankruptcy petition in December.”

He said the interim third party debt order will remain in force.

Cook said he found that “it was not material for the court to know the bankruptcy petition at this stage” nor the Karnataka HC offer. The judge was also not convinced Mallya was suffering hardship and said: “He has not made any application for a hardship order”.

He said the bankruptcy proceedings were only relevant to that order. “In this case the grounds for making an interim debt order strong. There was an undisputed and unpaid judgment for a substantial sum of money. ”

At the April 3 hearing the court had heard that Mallya owed her personal assistant to £ 84,000 (Rs 76 lakh) and a business acquaintance £ 128,000 (Rs 1.15 crore). He also owes £ 267,000 (Rs 2.41 crore) in taxes to HMRC and his preference was to use the £ 259,000 to pay these debtors off. He also owes an undisclosed sum to his previous lawyers, Macfarlanes, and £ 175,000 (Rs 1.58 crore) in costs to the Indian bank for a former case. But yet he spends £ 1,000 (Rs 90,000) a week on groceries

“The proper thing to do is adjourn”, adding, “The proper thing to do is adjourn.”

“I note that Dr Mallya has made no voluntary payment to date and has failed to pay the cost of the order,” the judge said. He said, “Whether the debt is effectively secured by the attachments made in India must be the hearing of the bankruptcy petition”. He said there was one support creditor – Investec to whom Mallya owes £ 3.4 million (Rs 30 crore) – and there were “likely to be other creditors.”

Mallya, meanwhile, took to Twitter to say, “Every time that I say I am willing to pay 100 percent of the PSU bank, media say I am spooked, terrified etc.” of extradition I am willing to pay either way whether I am in London or an Indian jail. Why do not you take the money? … I have offered 100 per cent but I am going to criminally charge instead. ”

Every time I say that I am willing to pay 100 percent back to the PSU banks, media say I am spooked, terrified etc … https://t.co/48BlaLeZVN

– Vijay Mallya (@TheVijayMallya) 1555455484000

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