Vijay Mallya no longer safe in UK; court deals massive blow

The noose around beleaguered liquor baron Vijay Mallya seems to be tightening with each passing day, as a British High Court judge has issued an enforcement order in favour of a consortium of 13 Indian banks. The consortium is in the process to recover funds owed to them by Vijay Mallya, 62, who is fighting extradition to India on fraud and money laundering charges. He reportedly owes as much as Rs 9,000 crore.
 
The order grants permission to the UK High Court Enforcement Officer to enter the tycoon's properties in Hertfordshire, near London, besides granting permission to the officer and his agents entry to Ladywalk and Bramble Lodge in Tewin, Welwyn, where the liquor baron is currently based. 
 
However, it is not an instruction to enter, which means the banks have the option to use the order as one of the means to recover estimated funds of around 1.145 billion pounds.
 
"The High Court Enforcement Officer, including any enforcement agents acting under his authority, may enter Ladywalk, Queen Hoo Lane, Tewin, Welwyn? and Bramble Lodge, Queen Hoo Lane, Tewin, Welwyn, including all outbuildings of Ladywalk and Bramble Lodge to search for and take control of goods belonging to the First Defendant (Mallya)," said the order by Justice Byran, dated June 26, reported PTI, adding "The High Court Enforcement Officer, including any Enforcement Agent acting under his authority, may use reasonable force to enter the Property if necessary."
 
Legal experts with knowledge of the case reportedly say the latest order by the High Court's Queen's Bench Division is the granting of permission, should it be required, while the banks consider "all the enforcement options available to them".
 
According to the report, the judge's order relates to the UK's Tribunal Courts and Enforcement Act 2007 and follows a UK High Court ruling in May, which refused to overturn a worldwide order freezing Mallya's assets and upheld an Indian court's ruling that the Indian banks were entitled to recover funds. 
 
The order marked the first recorded case of a judgment of the Debt Recovery Tribunal (DRT) in India being registered by the English High Court, setting a legal precedent, the report said, adding that the order will also enable the 13 Indian banks to enforce the Indian judgment against Mallya's assets in England and Wales.
 
The Indian banks include State Bank of India, Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd.
 
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The beleaguered tycoon has reportedly made an application in the Court of Appeal seeking permission to appeal against the order, which remains pending.