London court bails out Indian tycoon Mallya

LONDON: Well-known Indian business tycoon Vijay Mallya wanted in India over mega fraud allegations has been bailed after appearing here in court.

Entrepreneur Vijay Mallya, Chairman of the UB Group and co-owner of Silverstone-based Sahara Force India F1 team, was released from Westminster Magistrates' Court after paying a £650,000 security, court officials confirmed to The News.

The liquor baron was earlier arrested by the Metropolitan Police's extradition unit on behalf of authorities in India, where he is wanted in connection with money laundering and high value bank demands.

The 61-year-old, a former MP in India, entered the UK on a valid passport in March 2016 and since then the government of Indian has revoked his passport. India's Enforcement Directorate has been gathering evidence as part of its investigation into the tycoon's debts, totalling GBP977 million, linked to Mallya's now defunct airline Kingfisher. Indian investigators said last year Mallya had not been co-operating and had ignored their summons to give evidence three times.

Mallya was bailed on condition that he resides at his home address, that he does not leave or attempt to leave England and Wales, that his passport is surrendered to police and he does not apply for any travel documents. As Indian media rolled out live coverage of his arrest, Vijay Mallya said in a Twitter statement: "Usual Indian media hype. Extradition hearing in court started today as expected."

Sources have told The News that Vijay Mallaya’s lawyer will plead that his client shall be allowed to stay in the UK and Indian extradition bid rejected because India is amongst those country where human rights situation is deplorable and authorities use death penalty. The lawyer will argue that the business tycoon’s human rights will not be protected if he is sent back to India.

India and the UK, unlike Pakistan, have an extradition treaty in place but no Indian has ever been extradited against his will by Britain to India since the 1993 Extradition Treaty was signed between the two.

A statement by Vijay Mallya’s lawyer in London said: "Extradition proceedings against Vijay Mallya in my view are entirely ill conceived and will fail. Indian government is throwing good money in incurring substantial legal cost. There are better remedies available before English Courts if the Indian banks have a good claim against Mallya."