October 14, 2025

London is buzzing as Vijay Mallya, the flamboyant businessman wanted in India for fraud and money laundering, has given up his fight to cancel a UK bankruptcy order. This big move means the 'Trustee in Bankruptcy' can now freely chase after Mallya’s assets to repay a colossal judgment debt—around £1.05 billion! The debt is owed to a consortium of banks led by the State Bank of India (SBI), all linked to loans given to Mallya’s now-defunct Kingfisher Airlines. A scheduled High Court hearing in London to discuss Mallya’s attempt to overturn the bankruptcy order was suddenly called off. That’s because his legal team filed a notice of discontinuance last week, throwing in the towel. "Vijay Mallya's Trustee in Bankruptcy will be able to continue with their work in investigating and realising assets falling within his bankruptcy estate without any hindrance that this application might have caused them," said UK law firm TLT LLP, representing the banks. This move follows a strong backing of the banks’ case by High Court Judge Anthony Mann back in April. The judge made it clear: "The bottom line in relation to this is that the bankruptcy order stands." In simple words, the UK courts are firmly on the side of the lenders. Mallya had been trying to annul the 2021 bankruptcy order through his lawyers from Zaiwalla & Co., claiming the banks had already recovered the debt in India. But this attempt fizzled out because a related Indian writ petition, demanding details of any recoveries, hasn't made progress. Since court decisions in India are crucial for any UK annulment, this has put a brake on Mallya’s plans—for now. The saga started way back in 2017 when the banks got the Indian Debt Recovery Tribunal’s judgment recognized in UK courts. This was about a personal guarantee Mallya gave for loans to Kingfisher Airlines. After that, the banks hit Mallya with a bankruptcy petition in 2018, but he fought it hard on many grounds. Since May 2018, the banks managed to get a worldwide freezing order on Mallya's assets. After many court sessions, the UK High Court finally slapped a bankruptcy order on him on July 26, 2021. Meanwhile, Mallya remains on bail in the UK while he faces India’s extradition request. There’s also a "confidential" legal battle ongoing in the UK, likely tied to an asylum application. The drama continues, but for now, the bankers have a clearer path to chase their billions and settle the epic Kingfisher mess.

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Tags: Vijay mallya, Kingfisher airlines, Bankruptcy order, State bank of india, Uk courts, Money laundering,