India’s fugitive businessman discontinues a legal move to cancel his 2021 UK bankruptcy order, enabling trustees to pursue repayment of over £1 billion in dues.
Vijay Mallya, who faces fraud and money-laundering charges in India, has formally discontinued his application to annul a UK bankruptcy order.
A High Court hearing scheduled to decide the annulment’s direction was vacated after Mallya’s legal team filed a notice of discontinuance.
What This Means for the Banks and Trustee
- By dropping the annulment attempt, Mallya opens the way for the Trustee in Bankruptcy to proceed unimpeded in investigating and realising assets from his bankruptcy estate.
- This aids a consortium of banks, largely led by the State Bank of India (SBI), in their efforts to recoup a judgment debt of ~£1.05 billion previously registered through Indian courts.
- UK law firm TLT LLP, representing the banks, stated that discontinuance removes any obstacle that might have impeded asset recovery.
Legal & Historical Context
- The bankruptcy order dates back to July 26, 2021, after Indian banks got a debt recovery tribunal (DRT) judgment recognized in UK courts in 2017
- Earlier in April 2025, UK Judge Anthony Mann upheld the bankruptcy order, dismissing appeals and confirming it remains valid
- Mallya had pursued the annulment on grounds that the Indian banks had recovered their dues already. That argument appears weaker now amid the discontinuation
- It’s speculated he might attempt a fresh annulment in future, depending on developments in India and further litigation
