After Declared 'Bankrupt', Fugitive Mallya Accuses ED Of Attaching Rs 14,000 Cr Against Rs 6,200 Cr Debt In Twitter Rant

The decision of the UK court will now pave way for the consortium of Indian banks led by the State Bank of India (SBI) to recover loan given to the businessman's now-defunct Kingfisher Airlines.

New Delhi: A day after fugitive liquor baron Vijay Mallya was declared bankrupt by a United Kingdom court on Monday, Mallya took to social media platform to voice allegations on the Enforcement Directorate (ED) attaching his assets worth Rs 14,000 crores against debt of Rs 6,200 crores.

The fugitive businessman also accused the banks of making him bankrupt since they have to return money to the ED.

 “ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores. They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more. Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible,” Mallya tweeted on Monday.

The 65-year-old fugitive is living on bail in the UK, while a "confidential" legal matter is resolved in connection with the unrelated extradition proceedings.

The decision will now pave way for the consortium of Indian banks led by the State Bank of India (SBI) to recover loan given to the businessman's now-defunct Kingfisher Airlines. Mallya has been accused by a consortium of as many as 13 Indian banks of wilfully defaulting loans amounting to over Rs 9,000 crores which were sanctioned to the Kingfisher Airlines.

The verdict opens the doors for Mallya’s assets to be seized. Mallya said he would appeal against the HC order, but he was refused permission for the same. Meanwhile, Mallya's lawyer sought a stay as well as an adjournment of the order which was turned down the judge who concluded that there was "insufficient evidence" that the debt will be paid back to the petitioners in full within a reasonable period of time.

While responding to the move, Foreign Secretary Harsh Vardhan Shringla reacted to the move and said India has made its best case on Vijay Mallya being wanted for economic offences. He stated India has got the assurance from the UK authorities of his extradition to face charges of fraud and money laundering related to unpaid loans to his now-defunct Kingfisher Airlines.

Mallya's debt in question comprises principal and interest, plus compound interest at a rate of 11.5 per cent per annum from 25 June 2013. Mallya has made applications in India to contest the compound interest charge.