Previously known as the King of Good Times, Vijay Mallya, is now bankrupt. To make matters worse for India’s fugitive tycoon, the banks in the United Kingdom (U.K.,) are now looking at seizing 260,000 pounds from Mallya.
Accusing Mallya of defaulting on debts owed by his Kingfisher Airlines, the banks are now looking at recovering as much money as possible.
However, while the books show Mallya to be bankrupt, official records of the State Bank of India (SBI,) one of Mallya’s major lenders, say otherwise.
According to the lawyers of the SBI, Mallya is leading quite a lavish life even now. Despite the folding of Kingfisher Airlines in the year 2012, Mallya is living on a massive income from other sources.
Pinky Lalwani, Mallya’s wife, earns Rs. 1.35 crores per annum, while his personal assets amount to Rs. 2,956 crores. His wife and children are helping the beer tycoon stay afloat and tide the tough waters with almost all the luxury he could afford before the financial collapse as well.
Apart from his wife and children, Mallya also had help from his assistants. While his personal assistant lent him Rs. 75.7 lakhs, a business acquaintance gave him an advance of Rs. 1.15 crores.
Because of all the banks breathing down Mallya’s neck and asking him for their dues, Mallya said he is going to drastically reduce his spending. John Brisby QC, Mallya’s lawyer, said, his client was already adhering to all the rules and was going to reduce his weekly spending.
According to Brisby, Mallya is willing to drop his weekly living allowance, as allowed by the Court, from Rs. 16.21 lakhs a week to Rs 26.57 lakh a month.
Apart from all the money the beer baron owes the Indian banks, the Court found out, Mallya owes Rs. 30.6 crores to a South African bank, Investec.
On the 14th of January this year, the banks passed an interim order asking for taking possession of Rs. 2.33 crores. At that point, that was the amount available in Mallya’s accounts. However, Mallya opposed the order and asked the Court to stop the order proceedings.
At present, Mallya is living on bail after his extradition was approved by the Sajid Javid, the Home Secretary of the U.K., in February 2019. With the judges not giving a ruling on Mallya’s appeal against the extradition order, Mallya has no choice but to stay put.
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