Indian banks win UK bankruptcy appeal in Vijay Mallya case
London, Apr 9 (PTI): A consortium of Indian banks, led by State Bank of India, on Wednesday won their court appeal in London to uphold a bankruptcy order against Vijay Mallya in a long-standing legal battle seeking repayment of a judgment debt owed by his now-defunct Kingfisher Airlines.
High Court judge Anthony Mann ruled in favour of the banks to allow an appeal heard in February, while refusing two applications seeking permission to appeal filed by the 69-year-old businessman, declared a fugitive and wanted for fraud and money laundering charges in India.
“The banks’ pleaded position on security was one which they were entitled to adopt,” Justice Mann ruled.
“The bottom line in relation to this is that the bankruptcy order stands,” he concludes.
Law firm TLT LLP, representing the banks, noted that the ruling confirmed the banks did not hold security over Mallya’s assets and that the bankruptcy petition was correct. The court also found that the realisations from assets attached by the Enforcement Directorate (ED) were conditional and did not discharge the debt under English law.
“This is a significant result for the banks. TLT are pleased to have delivered this outcome, having acted for the banks since 2017 in relation to the DRT (Debt Recovery Tribunal) judgment of GBP 1.12 billion, obtained against Dr Mallya,” said Nick Curling, legal director at TLT LLP.
The case dates back to 2017 when the banks registered the DRT’s judgment in the English courts, which pertained to a personal guarantee Mallya had provided in relation to loans made to Kingfisher Airlines. The banks then served Mallya with a bankruptcy petition in September 2018, which he opposed on multiple grounds.
In April 2020, London’s Insolvency & Companies Court (ICC) ruled that the banks held security over Mallya’s assets, rendering the bankruptcy petition partially defective under Section 269 of the Insolvency Act 1986. The banks appealed this finding, and in March 2021 Justice Snowden permitted them to bring the security appeal, which was heard this year and has now been concluded.
In the interim, the banks amended the bankruptcy petition, agreeing they would relinquish any security held if Mallya was declared bankrupt. Mallya had opposed this amendment, arguing it was contrary to Indian law and public policy. However, in April 2021, the ICC ruled that the amendment was not contrary to Indian law or public policy.
“Despite Mallya’s subsequent appeals, including an appeal against the amendment decision and the Bankruptcy Order itself, Sir Anthony Mann sitting as a judge in the High Court delivered a decisive judgment on 9 April 2025. The court allowed the Security Appeal in favour of the banks, refused Mallya’s permission to bring the amendment appeal and the appeal against the bankruptcy order and ultimately upheld the bankruptcy order,” added TLT.
Mallya, who was declared bankrupt in July 2021, is pursuing a separate annulment application in the UK court, which is now scheduled for a directions hearing in October.
“In circumstances where even the (Indian) government confirms that the assets were ‘restored’, it is fanciful to imagine that those recoveries are in any sense conditional. Mallya will, on this basis, pursue with vigour his application to annul the Bankruptcy Order in England in conjunction with proceedings in the Karnataka High Court to compel the banks to provide an accounting and come clean,” said Leigh Crestohl, Mallya’s lawyer at Zaiwalla & Co.
Meanwhile, Mallya 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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
LoP Ashoka accuses Karnataka govt of 'diverting' SC/ST funds for guarantees
Bengaluru (PTI): Leader of the Opposition in the Karnataka Assembly, R Ashoka, on Tuesday accused the state government of "diverting funds" meant for Scheduled Castes and Scheduled Tribes under the SCSP and TSP components to finance its guarantee schemes. He also alleged that the budget presented by Chief Minister Siddaramaiah has undermined the principle of social justice.
During the discussion on the 2026–27 state budget in the assembly, the BJP leader claimed that substantial portions of funds earmarked for Dalit welfare had been diverted for other schemes over the past four years.
He also questioned the implementation of allocations under the Scheduled Caste Sub-Plan (SCSP) and Tribal Sub-Plan (TSP), saying the government has "failed" to ensure that the money actually reached the intended communities.
“Today, the money here has been diverted. In this diversion of funds, social justice has been ignored. If the money meant for Dalits is looted, can that be called social justice?” he asked while criticising the government’s handling of SC/ST allocations.
According to the opposition leader, around Rs 14,198 crore had been diverted in the current financial year alone from SCSP and TSP allocations to various guarantee schemes announced by the government.
Listing the expenditure under these programmes, the former Deputy CM said Rs 8,296.32 crore had been allocated for the Gruha Lakshmi scheme, Rs 1,537 crore for Shakti, Rs 1,612 crore for Anna Bhagya, Rs 2,591.6 crore for Gruha Jyothi and Rs 1,062 crore for Yuva Nidhi.
“In total, Rs 14,198 crore has been diverted this year,” he said.
He further claimed that the diversion of funds had increased over the years.
“In 2023–24, Rs 11,144 crore was taken from SC/ST funds. In 2024–25, Rs 14,282.68 crore was taken. In 2025–26, Rs 13,343.84 crore was taken. In 2026–27, Rs 14,198.97 crore has been taken.”
“This amount keeps increasing year after year. In total, Rs 53,059.45 crore belonging to SC/ST communities has been taken during Siddaramaiah’s tenure,” he added.
Ashoka said that although the budget documents projected large allocations for Dalit welfare, the actual funds reaching the beneficiaries were significantly lower.
The government had earmarked Rs 44,632 crore for SC/ST communities in 2026–27, but once the diversion towards guarantee schemes was removed, the effective amount available was much less, he added.
The BJP leader also referred to a review meeting on January 31 to examine the utilisation of SCSP and TSP funds.
As per the review, Ashoka said only a part of the sanctioned amount had actually been released and spent.
“For SCSP, Rs 29,872 crore was allocated, but by January 27, only Rs 16,699 crore had been released, and the expenditure was Rs 15,391 crore."
Similarly, under the Tribal Sub-Plan, he alleged that Rs 11,900 crore had been allocated, but only Rs 6,521 crore was released and Rs 6,002 crore spent by the end of January.
“Even after eleven months, only about 50 per cent of the funds were released by the Finance department.”
Ashoka also criticised the allocation of SC/ST funds to departments and schemes that he said had little direct relevance to the welfare of those communities.
These included wildlife conservation programmes in the forest department, the tiger conservation project, maintenance of hospital buildings, and IT policy formulation.
“How are Dalits related to wildlife conservation? Are there SC tigers and ST elephants? How can funds meant for Dalits be used for tiger conservation?” he asked.
He also objected to funds being allocated from SC/ST components to institutions such as the Sanjay Gandhi Trauma and Orthopaedic Institute in Bengaluru and for Public Works Department buildings.
The opposition leader also charged that the government hiked taxes and prices of various commodities and services ranging from milk to petrol, vehicles, drinking water, sewerage cess, electricity, metro rail and bus fare, school and college fees, property taxes in Bengaluru, property e-Khata fee, A-Khata conversion, exam fee and birth and death certificate issuance.
“People are being taxed for digging cellar. The mines and geology department has issued notices to people. This is unheard of for me,” Ashoka said.
