Setback to Vijay Mallya, loses UK appeal in £1 Billion debt to Indian Banks case

Vijay Mallya, the embattled Indian businessman, suffered a significant setback on Wednesday as he lost his appeal against a bankruptcy order issued by London's High Court. The order pertains to a substantial debt exceeding £1 billion ($1.28 billion) owed to lenders, including the State Bank of India.

Judge Anthony Mann stated in a written ruling that "the bottom line... is that the bankruptcy order stands."

Vijay Mallya's lawyers said in a statement that he would continue to seek to overturn the bankruptcy order.

Background of the Legal Battle

Vijay Mallya, who lives in Britain, has been embroiled in a protracted legal struggle with lenders and Indian authorities since the collapse of his defunct Kingfisher Airlines in 2012. 

In 2017, a group of banks obtained a judgment in India worth over £1 billion against Mallya, who had personally guaranteed the airline's debt. This ruling was later registered in Britain and led to a bankruptcy order being issued against him in 2021.

Mallya Claims Banks Have Recovered Assets

On Monday, Vijay Mallya asserted that Indian banks have secured access to his properties valued at ₹14,131.6 crore, which is more than double the amount he owed to public sector banks. 

The embattled businessman's claim was based on purported references in the Finance Ministry's annual report for 2024-25, which detailed the restoration of attached properties worth ₹14,131.8 crore to the banks.

Indian Banks' Recovery

Vijay Mallya highlighted that the banks have recovered over ₹14,000 crore, which is twice the amount awarded by the Debt Recovery Tribunal. He referenced the Finance Ministry's annual report, which noted that the complete amount of attached properties worth ₹14,131.6 crore had been successfully restored to public sector banks in his case.

In a post on X, Vijay Mallya remarked, “Finally, against a DRT judgment debt of ₹6,203 crore, admitted recovery of ₹14,131.8 crore, which will be evidence in my UK bankruptcy annulment application. Wonder what banks will say in an English Court.”

Vijay Mallya Also Fighting Extradition to India

Vijay Mallya, who was also a co-owner of the Formula One motor racing team Force India, is separately contesting extradition to India to face fraud charges related to the collapse of Kingfisher Airlines. His most recent appeal against extradition was rejected in 2020, but Judge Mann noted that the extradition order "has still not been enforced." Mallya continues to resist extradition on other grounds, which have yet to be resolved.