The UK will soon deport an Indian liquor baron as demanded by his home country over bank fraud charges.
Vijay Mallya, one of the wilful defaulters that saw banking fraud in India rose by a whopping 74 percent between 2018 and 2019, has been a target for State Bank of India for almost three years after failing to pay back a Rs 9,000 crores loan. Mallya fled India in 2016, a day before the affected banks could get an order that would stop him from traveling from Supreme court, according to case-history. Following his escape, it was discovered that more than 80 percent of Mallya's investments are overseas.
India has since been trying to get the UK to extradite Mallya and seize his properties in the country. While his deportation order looks to be in the final stages, taking hold of his properties is proving to be a very difficult situation.
Complex UK Assets
Many of Mallya's assets in the UK involve a chain of companies which gives them a complex pattern and make them difficult to seize. Also, Mallya's legal team invocation of various international laws, as well as half a dozen civil and bankruptcy proceedings, make the case a more complicated one. A senior lawyer acknowledged that taking over Mallya's UK assets is an entirely different scenario compared to his deportation from the UK - full-proof evidence, as well as a trial in line with the provisions of the law, are required in assets recovery, he said.
However, proceedings in UK courts point towards the possibility of the India banks recovering the assets. In one of the proceedings, Mallya's appeal to stop the India banks from gaining access to one of his London accounts containing about £260,000 was dismissed by the court, but the banks have to wait for the bankruptcy petition.
Mallya will be deported, and the banks will most likely recover the assets.
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