SBI is all set to initiate bankruptcy proceedings against Vijay Mallya in the UK, reported The Economic Times.

The action is being taken to mount legal pressure on the absconding businessman for the recovery of loans. The process could be started against Mallya in a UK bankruptcy court under individual insolvency laws backed by the arrangement that India has with Commonwealth nations, ET reported on Tuesday.

“Banks have managed to successfully get a freeze over his international assets. We hope to recover a substantial amount once we are done with all the legal action against Mallya,” person aware of the plan was quoted by the paper.

The report said that the proposed action that comes in addition to the freezing of all assets of Mallya is seen as an additional layer of security against the tycoon.

While no action has yet been taken in this direction, the report informed that lawyers from both sides have been made aware of the impending development. “Bankruptcy action against Mallya is in the works and you will see the result very soon,” said the person.