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Chief Insolvency and Company Court judge Briggs, in his verdict delivered Thursday, said there is no obvious advantage to the banks to pursue this class action at this point in time.
According to the prosecutors, representatives working for Russia and Qatar bribed FIFA executive committee officials to swing votes in the crucial decision of world football's governing body.
A fortnight ago, the UK Home Department had cleared the extradition of international cricket bookie Sanjeev Chawla, allegedly linked with the betting syndicate patronised by the D-Company, to India.
The gangster was nabbed in South Africa in a joint operation by the SA police and Senegal security agencies and was later extradited to Senegal.
The scandal and the odium that followed the 2000s revelations served to drive away many of the fans from the sport they loved dearly.
The investigators, who unearthed the 2000 match-fixing scandal that shook the faith of many cricket lovers in the game, feel "satisfied" with the extradition of Chawla, a key accused in the case, from the UK on Thursday.
I request the banks with folded hands, take 100 per cent of your principal back, immediately, he said outside the Royal Courts of Justice in London.
The declaration, made under the Fugitive Economic Offenders (FEO) Act, paves the way for confiscation of his properties.
The US has already declared Dawood Ibrahim a global terrorist running an international drug syndicate and sharing the gang's routes with Pakistan-based terror outfits.
'This is the power of democracy. This is a democratic tsunami,' said Tommy Cheung, a former student protest leader who won a seat in the Yuen Long district close to China's border.