Mallya barred from holding position with a listed company

India’s Securities and Exchange Board has barred Vijay Mallya from accessing the securities market for three years or holding any position as director or key manager of a listed company for five years.

But at the same time the fugitive former head of United Spirits is seeking permission to appeal against a high court ruling in London that his global assets up to £1.145 billion should remain frozen.

In a third development over the weekend Mallya resigned as director of Force India, his Formula 1 grand prix racing team which is based at the Silverstone circuit in Northamptonshire close to his UK mansion.

Mallya was quoted as saying that his son, Siddharth Mallya, would be taking on the position of company director in his place, while he continues in his role as ‘team principal’.

“I have my own legal issues to take care of, so it’s better that the company remains unaffected,” he was quoted as saying.

The victory for a consortium of Indian banks in the London court banks means they can now attempt to seize Mallya’s assets in England and Wales. The court order prevents him from removing any assets from England and Wales up to the £1.145 billion value or in any way dispose of, deal with or diminish the value of his assets worldwide up to the same value.

A decision on whether Mallya will be allowed to appeal against the asset freezing order is expected within six weeks.

That could coincide with his next appearance at Westminster Magistrates Court on July 11 where he will continue to contest a warrant for his extradition to India on charges of fraud and money laundering. It is intended that the court should hear closing arguments and then set a date for a ruling.

Mallya’s lawyers have claimed the criminal charges against him are “without substance” and “politically motivated”. They have also challenged the case on human rights grounds, questioning the conditions at Arthur Road Jail in Mumbai, where he will be held if extradited.

Mallya, who fled to Britain in March 2016, has consistently denied any wrong-doing.