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  1. Vijay Mallya arrested in London in loan default case: Here is a timeline showing downfall of Kingfisher Airlines, fall of liquor baron

Vijay Mallya arrested in London in loan default case: Here is a timeline showing downfall of Kingfisher Airlines, fall of liquor baron

The "King of Good Times" Vijay Mallya was on Tuesday arrested in London by Scotland Yard, TV News channels reported.

By: | Updated: April 18, 2017 5:11 PM
Ministry of External Affairs last month said that the UK government has conveyed India’s request for liquor baron’s extradition which was sent to UK Court.

The “King of Good Times” Vijay Mallya was on Tuesday arrested in London by Scotland Yard, TV News channels reported. Ministry of External Affairs last month said that the UK government has conveyed India’s request for liquor baron’s extradition which was sent to UK Court. CBI will soon send team to London to bring back Mallya to India. The reports, quoting concerned authorities, said that Mallya will soon be produced in Westminster Court. Mallya has been arrested under Mutual Legal Assistance Treaty (MLAT). However, the arrest will not lead directly to Mallya’s extradition. Here is a timeline:

2005: In May 2005 Chairman of the United Breweries (Holdings) Limited Vijay Mallya establishes Kingfisher Airlines. The airlines is slated to be a world-class brand.

2006: To fund the purchase of the aircrafts, KFA approach IDBI Bank for a loan. Not having a good history with IDBI, the bank committee decides to decline Mallya’s proposal. Mallya approaches other banks for loans and succeeds.

2007: Kingfisher Airlines decides to acquire the almost bankrupt Air Deccan.

2008: Air Deccan deal is signed and United Breweries Limited pays Rs 550 crore for a 26 per cent stake in the carrier. In March, KFA owes a debt of Rs 934 crores. In September Kingfisher Airlines goes abroad for the first time, providing flights between Bengaluru and London.

2009: The airlines now owes a debt of Rs 5,665 crores, which grows into Rs. 7,000 crores. IDBI changes its mind and decides to provide a loan of Rs 900 crore to the airlines.

2010: All the banks inform the airlines that it would give nine months to pay back the loan. Mallya, now a Member of Parliament, continues to live an extravagant lifestyle.

2011-2012: Mallya withdraws a large sum of money Rs 33.46 crore for each respective year — from Kingfisher Airlines as salary. The carrier’s licence to operate is confiscated resulting in non-payment of salaries to its employees. As of March 2016, Kingfisher Airlines owes Rs 3000 crore to 3000 employees in terms of salary. It owes banks such as SBI and IDBI a colossal sum of US $1 billion as loan.

2013: UBHL is approached for a payment of Rs 6,493 crore in loans for Kingfisher Airlines by a consortium of banks, including SBI. Mallya assures that a large portion of the loan will be settled soon.

2014: “Wilful defaulter” tag is given to Mallya by United Bank of India. Other banks like SBI and PNB follow suit.

2015: Finance Minister Arun Jaitley declares that the airlines has a debt of Rs 9,091.40 crore. In April, Mallya’s personal aircraft is sold at Rs 22 lakhs by Mumbai International Airport Private Limited. The Service Tax Department holds the airlines accountable for a non-payment of Rs 115 crore. The Department approaches Bombay High Court to seize Mallya’s passport.

2016: In February, Mallya is asked by the board at United Spirits Limited to step down. In March, a syndicate of banks approached Supreme Court of India in a plea to stop Mallya from escaping the country. Mallya however, has already left the country, taking refuge near London. A special magistrate court issues a non-bailable arrest warrant (NBW) against Mallya for not appearing in court for a slew of pending cases. In April, ED approaches a special court in Mumbai to issue another non-bailable arrest warrant under the Prevention of Money Laundering Act, 2002. The court goes ahead and does so. Reports surface alleging that Mallya has transferred $590 million abroad.

2017: In March, Mallya criticises the Narendra Modi government, claiming that the Centre is “bent upon holding me guilty without fair trial.” In the same month, Ministry of External Affairs says that the UK government has conveyed India’s request for liquor baron Vijay Mallya’s extradition which was sent to UK Court.
In April, Mallya’s luxury property, the iconic Kingfisher villa in Goa, is sold to Sachiin Joshi for Rs 73.01 crore by a consortium of banks led by the State Bank of India. In the same month, he is also arrested in London.

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  1. N
    Narendra M Apte
    Apr 18, 2017 at 5:36 pm
    When we are saying something about arrest of Vijay Mallya for loan defaults amounting to several thousand of cores, we should not overlook the fact that political interference was the dominant factor when loans to companies owned or run by Vijay Mallya were sanctioned and disbursed. It is an acknowledged fact that loans were never disbursed in a transparent manner. But surprisingly not one politician has been named as one of the accused for the loan default. One fails to understand how private banks failed to take precaution while disbursing loans to Kingfisher Airlines and other Mallya companies.
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