Vijay Mallya extradition ruling expected on Monday

The long-running hearing into India’s request to extradite Vijay Mallya, the former head of United Spirits, should come to a critical point on Monday with a ruling expected.

(Photo: Wiki)

Dame Emma Arbuthnot, the senior magistrate at Westminster Magistrates Court, is expected to rule on whether the former head of United Spirits should be returned to India to face charges of fraud and money laundering involving more than £1 billion.

The case, which began on 4 December last year, centres on whether Mallya ever intended to repay the £1.15 billion he was lent by a consortium of Indian banks to prop up his disastrous Kingfisher Airlines.

The creditors claim he diverted the money into other activities: Mallya has consistently maintained that he has done nothing wrong and that he has sufficient assets to meet all his liabilities. He claims he is the subject of a political witch-hunt.

Earlier this week, Mallya renewed his offer to repay the debts associated with Kingfisher Airlines’ collapse, but only the principal. “Please take it”, he tweeted.

That is unlikely to persuade the creditor banks to accept because the offer does not include a considerable sum in accrued interest. Indian courts have already seized considerable assets from Mallya and the banks will hope for repayment in full once the various cases are concluded.

Nor, observers in Delhi suggest, would repayment address the charges of fraud and money laundering Mallya faces.

In India Mallya has been declared a proclaimed offender and has been held in contempt of the country’s Supreme Court for failure to make a full declaration of his global assets.

He fled to the UK in March 2016 following an alleged tip off that he was about to be arrested. He says he left India as part of a normal lifestyle pattern.

Since then India has succeeded in imposing a global freeze on his assets and he has been living on an allowance of £18,350 a week. Since August 2017 he has been on bail of £650,000 and has had to surrender his travel documents.

His personal plane was impounded and sold, as was his yacht and numerous Indian properties. His Force India Formula 1 grand prix team went into administration and Mallya lost his stake before it was rescued. He no longer has any influence at Royal Challengers Bangalore, the Indian Premier League cricket franchise he ran.

If the hearing goes against Mallya, in the normal course of events the British Home Secretary would have two months in which to order his enforced deportation to India.

But no matter how Lady Arbuthnot rules, observers expect to losing side to appeal against her judgement. This will send the case upward within the English and Welsh judicial system, with Mallya expected to remain on bail for some time yet.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Key Account Executive

Berkmann Wine Cellars
London, UK

Sales and Marketing Director

New Generation Wines
London, UK

Brand and Marketing Manager

New Generation Wines
London, UK

Sales Account Manager x 2

Berkmann Wine Cellars
London, UK

Sales Director

Manchester Gin
Manchester, UK

Business Development Manager / Account Manager

Harviestoun Brewery
Glasgow, UK, Scotland West

Staff Writer

The Drinks Business
London, UK

Customer Services Administrator

Speciality Drinks
London, UK

Marketing and Communications Manager

Southern England Wines (UK) Ltd
Petworth, UK

Wines from Spain Annual Tasting 2019

London,United Kingdom
7th Mar 2019


London,United Kingdom
10th Mar 2019
Click to view more

The Global Riesling Masters 2018

View Results

Rioja Masters 2018

View Results

Click to view more