London court upholds bankruptcy order in favour of Indian banks seeking repayment from Kingfisher Airlines’ defunct tycoon
A consortium of Indian banks led by the State Bank of India (SBI) secured a significant legal victory in London on Wednesday, April 9, 2025, after the U.K. High Court upheld a bankruptcy order against embattled liquor baron and former airline owner Vijay Mallya. The ruling is a key milestone in the banks’ years-long pursuit of recovering debts tied to Mallya’s now-defunct Kingfisher Airlines, reported thehindu.com.
The judgment strengthens the Indian lenders’ legal hold on Mallya’s assets and clears a path for recovery efforts, as the fugitive businessman remains out on bail in the U.K. amid unresolved asylum proceedings
Mallya, who fled India in 2016 while facing fraud and money laundering charges, continues to reside in the U.K. on bail, while a separate “confidential” legal matter — widely believed to be linked to an asylum application — remains pending. This matter has delayed his extradition to India despite a judicial ruling in India’s favour.
The bankruptcy case revolves around unpaid loans amounting to nearly £1.15 billion, which were extended to Kingfisher Airlines before its collapse in 2012. The Indian bank consortium has long argued that Mallya deliberately defaulted on the loans, while Mallya insists that the collapse was due to business failure, not fraud.
The U.K. court’s decision allows the banks to take further steps to enforce their claims against Mallya’s U.K.-based assets, marking yet another legal blow for the former billionaire as he continues to contest extradition and fight legal battles on multiple fronts.