A controversial tycoon, nicknamed the ‘King of the Good Times’, has lost a High Court challenge against his extradition to India to face fraud allegations.
Drinks tycoon Vijay Mallya is wanted in his native country over allegations of fraud relating to his now-defunct Kingfisher Airlines.
The 64-year-old, who is chairman of the Indian conglomerate United Breweries (UB) Group, makers of Kingsfisher Beer, is accused of fraudulently funnelling government loans given to the airline, which was wound-up in 2012, to ‘vanity projects’.
These include co-founding now defunct Formula One racing team Sahara Force India.
Mr Mallya, who denies any wrongdoing, was made the subject of an extradition request from the Indian government to the UK government in 2017.
Drinks tycoon Vijay Mallya is wanted in his native country over allegations of fraud relating to now-defunct Kingfisher Airlines, which he denies. Pictured: Mr Maylla outside court in 2018.
The 64-year-old, who is chairman of the Indian conglomerate United Breweries (UB) Group, makers of Kingsfisher Beer, has been embroiled in financial scandals since the airliner was wound up in 2012. Pictured: Mr Mallya outside court in 2018
An extradition order was signed by then Home Secretary Sajid Javid in February after a senior judge ruled that Mr Mallya had a case to answer during a hearing at Westminster Magistrates’ Court in December 2018.
Mr Mallya challenged that decision at the High Court, with his lawyers arguing Judge Arbuthnot was wrong to conclude there was a case against him to answer.
But, in a ruling at the High Court on Monday, Lord Justice Irwin and Mrs Justice Elisabeth Laing rejected his appeal.
They said: ‘It is clear beyond any doubt that the senior district judge directed herself properly.
‘It is clear she had the criminal burden and standard in mind when she considered whether there was a prima facie case.’
Mr Mallya, once hailed as India’s version of British entrepreneur Sir Richard Branson, was in court throughout the hearing in February.
Senior District Judge Arbuthnot found Mr Mallya had misrepresented how loans received from banks would be used.
She said that bankers had been ‘charmed’ by a ‘glamorous, flashy, famous, bejewelled, bodyguarded, ostensibly billionaire playboy’ into losing their common sense.
Mr Mallya co-founded now defunct Formula One racing team Sahara Force India. Pictured: Mr Mallya at the Monza Grand Prix in 2009
Mr Mallya has the right to pursue and appeal against the ruling.
As previously reported by MailOnline, a group of Indian banks are seeking to recover more than £1bn in loans granted to the defunct airliner – which became India’s second largest domestic carrier after launching in 2005.
India’s fraud office later probed claims Mr Mallya funnelled loans to the struggling airliner via other firms and hid personal assets.
During a court hearing in December 2018, District Judge Emma Arbuthnot said the former Indian politician should be extradited.
Arguing he had cases to answer over conspiracy to defraud the Indian state-owned bank IDBI, Judge Arbuthnot said at the hearing in 2018: ‘I’m ordering an extradition, or rather I should say, I’m referring this matter to the Secretary of State.
‘There’s a misrepresentation that Kingfishers Airlines (KFA) was confident of meeting the short term challenges. Judging by the emails in 2009 KFA was not confident at all.
‘If the background checks were applied the loans should not have been granted. I find a Prima Facie [at first glance] case to answer for a conspiracy to defraud which involves not just the KFA executives but also the named bankers in IDBI.
‘I find there was misrepresentation about what the loans would be used for.
‘These payments included what some might say were vanity projects.’
She said there was evidence loan payments were ‘used to clear bills’ and for ‘sponsor payments’ to his motor racing team in 2010.
‘Essentially it appears that KFA was funding Dr Mallya’s team,’ she said. ‘In 2011 they voluntarily refunded the KFA.
An extradition order against the tycoon was signed by then Home Secretary Sajid Javid in February after a senior judge ruled that Mr Mallya had a case to answer in December 2018. Pictured: Mr Mallya at the Silverstone Grand Prix in 2017
‘It’s either the case that the various continuing failures were by design and with a motive… or it is a case of a bank who were enthralled with a glamorous, body-guarded, flamboyant man who charmed and cajoled bankers to lose their common sense’.
During that hearing, Mr Mallya, denied allegations of money laundering and fraud and branded them a ‘witch-hunt’.
Speaking after the hearing in 2018, he said: ‘I know the truth – that will come out in what we have to say.
‘She talked about Formula One team sponsorship – what she missed was when £15m was sent back to the KPA when they needed it, when they were in difficulty.’