Mallya misled banks, says prosecution in London court

LONDON: Controversial businessman Vijay Mallya appeared before the Westminster magistrate’s court on the first day of his extradition trial on Monday, even as the prosecution furnished details of the various loans Kingfisher Airlines had “fraudulently” taken from Indian banks.

Though Mallya sat impassively in court, he had presented a spirited defence before television channels prior to the hearing. “I have said repeatedly that these are false, fabricated and baseless charges, and that is my stand,” he said.

When asked why he chose to leave for the UK instead of standing trial in India, the businessman retorted: “I have been living in England since 1992.”

Mark Summers — appearing for India through the Crown Prosecution Service — told magistrate Emma Arbuthnot that he would first set out the prima facie case against Mallya, who is accused of misleading banks into giving loans to his airline company. A large number of documents from banks were cited with regard to loan applications amounting to ₹2,000 crore from October 1, 2009. Mallya’s meetings with banks chairmen were also mentioned at the court hearing.

The first session was devoted to setting out the chronology of bank loans. Summers said he would examine where the money went later in the day.

Most of the documents and loans mentioned during the proceedings pertained to the State Bank of India and the IDBI. They included credit ratings, internal appraisals and Kingfisher’s business plans. Mallya had provided personal guarantees in some loan applications.

Indian investigation officials were present at the court, which is expected to hear the case over a period of eight days. Mallya, who was arrested earlier this year, is likely to obtain an extension of his bail – which ended on Monday.