Highlights:
- Vijay Mallya’s bank account has been frozen.
- He continues to insist on a business failure being the cause, but investigators uncovered financial irregularities and fund diversions.
- Vijay Mallya flew off to London, leaving behind a large number of outstanding loans and a humongous debt.
Vijay Mallya is a name that all Indians are familiar with, even if they may not be aware of his brand Kingfisher, a brand that was once famous for its alcoholic drinks. On July 26, he was declared bankrupt by the London high court. A few hours before banks could apply for justice and asking for capturing Vijay Mallya, he flew off to London, running away from a large, unpaid debt. From the day he flew off, the legal drama in the London and Indian courts began, with a series of releases and capture of the runaway businessman. The banks however were able to recover 60-70% of their losses from selling off his assets.
Also Read Suspicious Income Tax Raids Conducted In The Offices Of Dainik Bhaskar Agency
The Reason For The Downfall of Vijay Mallya
The Kingfisher group fell into a deep hole around 2012, which caused Mallya to ask for debts from reputed banks. When everything started crashing down, and at the time of his trial, he stuck to the argument that it was due to a business failure, but investigators uncovered financial irregularities and fund diversions. Even though he offered to repay his debts to the banks, they couldn’t trust his word as it was not based on solid grounds and seemed unreliable. Now, even if his assets that are attached with the Debt Recovery Tribunal and Enforcement Directorate are sold off, it would never cover up his debt. Yet banks have been extracting money from his assets in whichever ways possible.
Also Read Mehul Choksi Granted Bail By The Dominican Republic’s Court
The View Of Financial Advisors On This Situation
Most financial advisors claim that the fast-paced life of Vijay Mallya is gone for good. The bank accounts owned by him are frozen. There are chances of opening the international asset section of his bank furthermore to recover the rest amount. Money is allocated to him for survival purposes like food, water, basic accommodation, and so on.
The life of this once-billionaire is still a source of awe for many financial advisors. Even though we knew that the Kingfisher was in debt, the revelation of the extent of bankruptcy was still a shock.
For the more latest news, visit current affairs.
