UK court approves extradition of Mallya to India in £1.5bn fraud case

UK home secretary Sajid Javid has approved the extradition of Vijay Mallya, the fugitive former head of United Spirits, to India, where he faces charges of fraud and money laundering.

The self-styled “King of the Good Times” has 14 days in which to appeal.

In a statement released on Monday, the Home Office said that “having carefully considered all relevant matters”, Javid had signed the order.

“Vijay Mallya is accused in India of conspiracy to defraud, making false representations and money laundering offences,” it said. He now has 14 days to appeal against the decision.

Mallya confirmed yesterday via Twitter that he had triggered the appeals process. He will remain on bail until the appeal is heard.

The decision to extradite Mallya follows a ruling by Westminster Magistrates on December 10 that he should be sent back to India for trial. He has previously been found guilty of contempt by India’s Supreme Court for failure to make a full financial disclosure to the court.

Mallya left India in March 2016 after defaulting on debts of more than £1.15 billion associated with the collapse of his Kingfisher Airlines in 2012.

He denies “fleeing” from India and says he made an “unconditional” offer to pay back the sum in full in July last year.

Mallya faces a raft of charges relating to financial irregularities at Kingfisher Airlines. He is being investigated by India’s Central Bureau of Investigation and the Enforcement Directorate, which handles financial crimes.

A court decision is expected in India today on whether some £1.5 billion of Mallya’s assets previously seized by the authorities can be sold to repay debts which a consortium of 17 banks claim he owes them.

Separately Mallya faces civil actions from both Diageo and United Spirits. In 2012, Mallya sold a majority stake in his United Spirits group to UK drinks giant Diageo but both companies claim breaches of contract and financial irregularities and are suing him for a combined £250m in both London and India.

Mallya has consistently claimed that the debts incurred to the banks were in an attempt to help Kingfisher Airlines “trade through” its difficulties and that the losses were due to business failure, not fraud.

He also alleges that he is being made a scapegoat by the Indian government.