India’s ‘King of Good Times’ loses extradition bid
▶ Decision deals a blow to Vijay Mallya but tycoon is likely to appeal against ruling
One of India’s most flamboyant businessmen faces extradition from Britain after losing a long-running legal battle against claims of money laundering and fraud after the collapse of his business empire.
Vijay Mallya, 62, flew to the UK in 2016 pursued by investigators and police who accused the tycoon of misusing loans for his ailing Kingfisher Airlines. He is accused of leaving behind debts of more than $1 billion (Dh3.67bn).
The businessman was arrested last year after a consortium of 17 banks accused him of failing to pay back $1.3bn in loans for the now-defunct airline – despite having the money.
Mr Mallya denied fleeing India and had offered to repay public money while on bail for 20 months awaiting Monday’s extradition hearing.
His defeat in court yesterday is just the first stage of a legal battle that is likely to continue for months.
Outside court in central London, Mr Mallya described the ruling as unfortunate, but declined to comment on his next steps.
The criminal case against Mr Mallya was launched in India when investigators trawled the financial affairs of Kingfisher Airlines after it was grounded in 2012.
Despite being in deep trouble, Mr Mallya used bank loans for the airline and pumped them into two “vanity projects”, including a Formula One team and a corporate jet, according to a 74-page ruling.
Judge Emma Arbuthnot rejected Mr Mallya’s claims that the extradition was a political campaign aimed at quelling public anger at bad debts built up by India’s state-owned banks.
The judge said that the financial position of the airline had been repeatedly misrepresented and rejected claims that Mr Mallya faced an unfair trial in India because of media scrutiny of his case.
She said that Indian banking executives had a case to answer for fraud rather than being “in thrall” to the “glamorous, flashy, famous, bejewelled, bodyguarded, ostensibly billionaire playboy”. The judge said she would recommend the UK government extradite Mr Mallya but told the businessman there “may be a long process before us” before it is completed.
Mr Mallya previously indicated that he would pursue other legal avenues to prevent his enforced return to stand trial in India.
He claims the collapse of his airline was an unfortunate corporate failure caused by a surge in fuel costs and mechanical mishaps.
“Whatever the decision we well review it and take the appropriate steps. We will do whatever we need to do,” he told The National.
“We first need to read the judgment in total before making any decision,” he said.
Mr Mallya, the self-styled King of Good Times, inherited a family brewing empire in the 1990s and embarked on a series of acquisitions.
He set up Kingfisher Airlines in 2005 but his business empire unravelled with the grounding of the airline.
Yesterday’s ruling is a crucial win for Indian prime minister Narendra Modi, who has been battling to contain political damage after about 31 Indians linked to fraud cases fled abroad.
The judge said she would recommend Mr Mallya be extradited but told him there ‘may be a long process before us’