Indian tycoon Mallya to find out extradition fate

Indian tycoon Vijay Mallya will appear in UK court where it will be decided that whether former Kingfisher Airlines’ chief  can be extradited to India, where he is accused of fraud.

The 62-year-old liquor tycoon faces a case of loan of Rs 9,000 crore, besides allegations of money laundering and diversion of loan funds. He left India in 2016 and is on a self-imposed exile in London.

The loans from the IDBI bank were intended to bail out his failed carrier Kingfisher Airlines. Mallya said in July that he had made an “unconditional offer” to an Indian court in a bid to settle the charges, but denies that it was an admission of guilt.

‘It is obvious the government has told banks not to accept any offer and told the ED to attach my assets. I want to correct the narrative that I stole public money and ran away. On the contrary, I infused Rs.4, 000 crore of my money to save Kingfisher Airline. Let banks recover 100% of principal so there is no loss to public funds. Let an independent court decide on interest.”

England’s Chief Magistrate Emma Arbuthnot, who has specialized in handling the extradition cases, is hearing the case. The judge's decision on whether to send Mallya's case to UK Home Secretary Sajid Javid can be appealed with the UK High Court's permission, with the person to be extradited entitled to make an application for permission to appeal to the High Court within 14 days of the date of the Chief Magistrate's ruling.

Lawyer Mark Summers, representing the Indian authorities, during an earlier hearing, told the court that Kingfisher Airlines had been incurring losses and was forced to defer payments to its creditors. The loans were sought in October 2009 and hoped to emerge as a profitable venture from the global financial crisis.

"This was an airline in trouble at this stage, which is why it was seeking financial assistance from a large number of banks," for large amounts of money, Summers added.

Mallya who is known for his lavish lifestyle, made Kingfisher beer a global brand. He stepped down as the director of the Indian Premier League cricket team Royal Challengers Bangalore last year. Mallya was once known as the "King of Good Times" but dropped off India´s most wealthy list in 2014, engulfed by Kingfisher Airlines´ massive debts.

His financial dealings are being investigated by the federal Central Bureau of Investigation and the Enforcement Directorate, a financial crimes agency. He has been living in a sprawling $15 million (13 million euro) mansion in southeast England but has denied desertion.