Fugitive businessman Vijay Mallya, 64, who is currently fighting extradition from the United Kingdom (UK), owes Indian banks almost Rs 9,000 crore. He is the chairman of United Breweries, that is famous for making Kingfisher beer, and was former chairperson  of United Spirits, Sanofi India and Bayer CropScience. He is currently facing charges of money laundering, cheating, criminal conspiracy and diversion of loan funds. 

How Vijay Mallya’s problems started?

The downfall of Mallya started when his luxury airline, the Kingfisher Airline Limited, came to a halt in 2012 after amassing huge debts as an aftermath of 2008 recession and soaring fuel prices. 

After the collapse of his airlines and his incompetence in paying back his debts, Mallya fled to the UK in 2016 and has since then been a subject of extradition for the Indian government. He was declared a fugitive offender under the Fugitive Economic Offenders Act in January 2019. Mallya owes almost Rs 9000 crores to a consortium of 17 banks, led by State Bank of India (SBI). 

What are the charges against Mallya?

Mallya and his firm Kingfisher Airlines Limited are currently under scanner by Enforcement Directorate (ED), Central Bureau of Investigation (CBI), Serious Fraud Investigation Office (SFIO) and the Securities and Exchange Board of India (SEBI). 

The ED has alleged that Kingfisher Airlines diverted almost Rs 3,457 crores from the loan that it received and has put charges on Mallya under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA), accusing him of ‘concealment, possession, acquisition and use of proceeds of crime.’

Mallya has also been charged under Sections 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code, and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act by the CBI. 

What is the current situation and Mallya’s stand?

The Indian government has been trying to extradite Mallya from the UK and the case is going on in London High Court, where he has recently lost his appeal against extradition. However, Mallya, the former owner of the Royal Challengers Bengaluru cricket team, has publicly offered to pay back his debts, denying any wrongdoings. 

According to Economic Times, Legal counsel close to Vijay Mallya are exploring the possibility of approaching the European Court of Human Rights (ECHR).