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Indian banks pursue Vijay Mallya in U.K. High Court for assets disclosure

Vijay Mallya. File   | Photo Credit: AP

Two superyachts, a game reserve, numerous undeclared high-value and vintage cars, valuable paintings and a piano previously owned by Elton John are among the assets in contention as part of the latest legal claim by Indian banks against embattled liquor tycoon Vijay Mallya in the U.K. High Court on Monday.

The consortium of PSU banks led by the State Bank of India (SBI) have been pursuing the 63-year-old former Kingfisher Airlines boss, in its attempt to recover some of the funds owed to them under a £1.145 billion worldwide freezing order.

During the hearing on Monday, they sought the disclosure of crucial documentation that would establish the true ownership structure of the VMDS Trust, named after Mr. Mallya’s father Vittal Mallya (VM), in which Vijay Mallya claims he has no “beneficial interest”.

“We, that is the courts in India and here [U.K.], are not being told the full story,” Barrister Nigel Tozzi told Justice Robin Knowles on behalf of the Indian banks.

He informed the Court that TLT LLP, the law firm acting for the Indian banks, had asked continuing questions regarding who controls the VMDS Trust after it emerged that most of the assets in contention are held by the Trust, which is associated with Mr. Mallya’s family members.

“All roads lead to VMDS. But, the attempts to get fundamental information is quite clearly being obstructed, which supports the assertion that Dr. Mallya has a beneficial interest (in the Trust),” said Mr. Tozzi, as he laid out the banks’ side of the arguments.

He told the Court that the “contradictory answers” received by the banks in their queries to the true ownership of assets, indicates that Mr. Mallya was trying to distance himself from an image of his own creation from the world of being a “fabulously wealthy individual.”

The TLT LLP have applied for a series of orders in the wake of the worldwide freezing order, dating back to May last year, to track down and prevent the dissipation of assets by Mr. Mallya.

In the latest application this week, they are seeking full disclosure of the complex ownership structure of many of the assets they believe ultimately belong to Mr. Mallya.

Among the assets in question include the Force India and Indian Empress superyacht — which was fitted with an Elton John piano in 2015, after being reportedly acquired by Mr. Mallya at a charity auction.

A fleet of high-value cars acquired from the sale of a 1956 Porsche Spyder for £4.1 million, by a consultancy named TBL, some artwork from Mr. Mallya’s Ladywalk property in the English village of Tewin in Hertfordshire and a game reserve in South Africa and properties in London and Hertfordshire, near London, were also referenced during the latest hearing.

According to Mr. Mallya, all of these are owned by either members of his family or by the VMDS Trust, which he dissociates himself from — a fact which is contested by the banks.

To establish their case, the banks’ counsel referenced a series of declarations made by Mr. Mallya before the Supreme Court in India as well as information available in the public domain.

Qatar National Bank and Barclays Bank, linked with the mortgages associated with the superyachts, and Bonhams and RM Auctions Ltd., linked with some of the other assets in contention, have expressed their willingness to share information to comply with any court order to be made in the case this week. However, they are seeking their legal costs in the matter as interested parties.

Meanwhile, Force India Limited and Indian Empress Limited — which claim ownership rights over the Force India and Indian Empress superyachts respectively — are challenging the disclosure of certain documents.

Justice Knowles, presiding over the hearing in the Commercial Court division of the High Court, has indicated that he intends to hand down his judgment in the latest application filed by the banks, at the end of the hearing.

Meanwhile, a related U.K. High Court order, dated July 18, by Justice David Waksman dealt with Mr. Mallya’s stay application on further enforcement orders in the U.K. until his bankruptcy petition is heard by the Court at the end of the year.

Mr. Mallya remains on bail pending his High Court appeal, now scheduled for February 2020, in separate extradition proceedings brought by India in relation to alleged fraud and money laundering charges amounting to ₹9,000 crores.


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Printable version | Sep 20, 2021 4:36:37 PM | https://www.thehindu.com/news/national/indian-banks-pursue-vijay-mallya-in-uk-high-court-for-assets-disclosure/article28654196.ece

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