British Court Allows Sale of Mallya’s Cars to Recover Dues
The cars on the block include one Range Rover, two Ferraris, a Porsche Cayenne, a Mini Countryman and a Maybach 62.
A British court has allowed the sale of six luxury cars belonging to Vijay Mallya to recover dues the fugitive liquor baron owed to a consortium of 13 Indian banks.
The Queen’s bench division of the Commercial Court in London passed an order on Oct.11 allowing the high court enforcement officer to sell Mallya’s six cars for at least Rs. 3.88 crore plus taxes. The luxury cars that are on the block are one Range Rover, two Ferraris, a Porsche Cayenne, a Mini Countryman and a Maybach 62, the Hindu Business Line reported.
Indian banks had won the case against Mallya in May this year when the court had said that the banks are entitled to recover their dues. Paul Gair, partner at TLT, the law firm that represents Indian banks, told press agency PTI, “We can confirm that the High Court Enforcement Officer has acted on the banks’ instructions in seizing and selling these cars. The cars are expected to be sold shortly.”
“This is one part of the banks’ ongoing enforcement of their judgment against Dr Mallya,” he added.
The litigation listed 13 banks as applicants. These are State Bank of India, Bank of Baroda, Corporation Bank, Federal Bank Ltd., IDBI Bank Ltd., 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.
The banks are looking to recover dues of $1.55 billion from Mallya.
In June, a UK High court had ordered Vijay Mallya to pay £200,000 toward costs incurred by the bank consortium in their legal fight.
In another order passed in June, the court had permitted the UK High court enforcement officer to search and seize the assets of Vijay Mallya.
The Hindu said in its report that a UK enforcement officer “may use reasonable force to enter the property if necessary,” according to an order passed by the Commercial Court in London.
Mallya has also been fighting a case against his possible extradition to India. In order to avoid being extradited to India, he had claimed that conditions in Indian jails are inhumane and there is no sunlight or fresh air in the cells.
The Central Bureau of Investigation (CBI), the agency tasked with bringing Mallya back to India submitted a video of a Mumbai’s Arthur Road jail to the UK court in August to refute his claims. According to the video, the jail has natural light, private toilet, TV, and access to the courtyard from cell number 12. Mallya will be lodged in the Arthur Road jail when he is extradited to India.