London High Court to hear Mallya extradition case tomorrow

This week will decide whether former liquor baron Vijay Mallya will continue to stay in the UK or will be sent back to India as his appeal against his extradition comes up for hearing in the London High Court on Tuesday.

The hearing is expected to be held for three days and the judgment will be pronounced next month. If the ruling goes against Mallya, he will be extradited within 28 days. Technically, he can still appeal against the order with the UK Supreme Court and the European Court of Human Rights which will only delay the inevitable. If he wins the appeal, then he will be free to travel outside the country. Mallya was arrested during his stay in London in April 2017.

In February 2019, UK Home Secretary Sajid Javed signed the extradition order following a ruling by the Westminster Magistrates Court in December 2018. But Mallya had filed an appeal against the extradition soon after the Royal Court of Justice in July last year allowed him to do so. Mallya faces charges of fraud and money laundering and has been accused of not paying back loans and interest amounting to over ₹9,000 crore which he owes to a consortium of banks led by State Bank of India.

Mallya fled to London in March 2016 claiming that he will not receive a fair trial in Indian courts. Mallya has repeatedly claimed that he is willing to return all the money he owes to banks and hence should be allowed to sell the pledged shares in United Spirits, United Breweries and other entities. He has also maintained that his failed Kingfisher Airlines venture owes money to the lenders and not him. The Enforcement Directorate recently allowed the lenders to sell pledged shares but the banks are yet to act on them.

In its ruling, the Westminister Magistrates court said there was a prima facie case of conspiracy to defraud, involving officials of Mallya’s Kingfisher Airlines and IDBI officials.

He had also been charged with misrepresenting how loans received from banks would be used and that there was clear evidence of dispersal and misapplication of the loan funds. The judge also found a prima facie case that Mallya was involved in a conspiracy to launder money. He has also been accused of funding his Formula 1 Team Force India and was shown in the books as operating expenses for flights. The court also said there was no merit in the claim that politicians dictate terms to Indian courts and that the judges there were corrupt.

Wilful defaulter

Mallya has been declared a wilful defaulter and fugitive by several courts in India and faces cheque bouncing cases against him. Diageo, which now owns his United Spirits in India, has also filed a case against him for not returning $40 million paid to him for alleged breach of agreement.

The UK-based liquor giant has also won a case in the London High Court which has ordered Mallya to pay $135 million to the company.

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