New Delhi: Indian businessman and loan defaulter of Indian banks Vijay Mallya was arrested in London on Tuesday by Scotland Yard police on an extradition warrant from India. He was produced before the Westminster Magistrates’ Court where he was given bail. Mallya is also alleged for several other financial irregularities in India.
In response to a query on the arrest of Mallya in London, official spokesperson of the Ministry of External Affairs Gopal Bagle said, “Vijay Mallya’s arrest in London on Tuesday was in connection with the request by the government to UK authorities for his extradition. Legal process in this regard is underway in the UK. The 2 governments are in touch in this context.”
British authorities have informed the Central Bureau of Investigation (CBI) about the arrest. India had given a formal extradition request for Mallya as per the extradition treaty between India and the UK through a note verbale on 8 February this year.
While handing over the request, India had asserted that it had a legitimate case against the liquor baron and maintained that if the extradition request was honoured, it would show British sensitivity towards India’s concerns.
Mallya also owned Kingfishar Airlines and he owes a total of Rs 9,000 crore to 17 banks led by State Bank of India. Mallya had fled to London last year. Earlier, he entered a deal with the USL under which he was given over Rs 500 crore for leaving the company and he was made free from any personal liability and ever since Mallya was living in London.
After this, the Supreme Court asked Mallya to appear before it in March 2016 along with his passport. India formally requested the British government for extradition of Mallya on 8 February.
Mallya had tweeted on 9 March that he was keen on reaching a compromise with the banks; he expressed his willingness to pay a lump sum. He further wrote that there was a provision for such payments, which he was not being allowed to exercise.
Public Sector Banks have policies for One Time Settlements.Hundreds of borrowers have settled. Why should this be denied to us ?
— Vijay Mallya (@TheVijayMallya) March 9, 2017