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Tuesday, April 18, 2017

Vijay Mallya Arrested in London,gets bail Tuesday April 18,2017

Vijay Mallya has been granted bail after being arrested in London on Tuesday morning April 18,2017 , and is due to appear in court next month.
“Officers from the Metropolitan Police’s Extradition Unit have this morning, Tuesday 19 April arrested a man on an extradition warrant,” said Scotland Yard in a statement, adding that he had been arrested on behalf of Indian authorities in relation to accusations of fraud. “He was arrested after attending a central London police station and will appear at Westminster Magistrates’ Court later today.”
Usual Indian media hype. Extradition hearing in Court started today as expected.
India began formal proceedings to extradite Mallya who is wanted in connection with a number of charges, including defaulting on loans amounting to Rs. 9,000 crore earlier this year, with papers being handed over in New Delhi and London. While there is an acknowledgment that the extradition is up to the UK court system, sources previously said that they believed there was also political will to support the process.
No one was extradited to India under the first 23 years of the India-UK Extradition Treaty of 1993. Last year, Britain extradited Samirbhai Vinubhai Patel who was wanted by India in relation to the 2002 Gujarat riots, leading to hopes for future successful extradition requests.

Timeline: Vijay Mallya’s financial defaults that led to his arrest in London

May 2005: Chairman of United Breweries (Holdings) Limited Vijay Mallya starts a premium, luxury airline–Kingfisher Airlines. The airline was marketed as the most luxurious, world class, cutting edge carrier in the country.
2006: Kingfisher Airlines applies for a loan with IDBI bank that would support its aircraft acquisitions. Mallya didn’t share a clean history with the bank in relation to his Mangalore Chemicals and Fertiliser Acquisitions in the past. Committee rejects proposal.
2007: Kingfisher Airlines does fairly well in its initial years and Mallya decides to take over Air Deccan that was going under.
2008: Air Deccan takeover is formalised. United Breweries pays a markup of Rs. 550 crore for their stake of 26 per cent in the company. What would prove to be a bad deal puts United Breweries into financial woes.
March 2008: Kingfisher accrues a debt of Rs. 934 crores due to rising oil prices, spiking working cost stress of a premium and an ailing airline.
September 2008 – Kingfisher flies its first international flight. Flight between Bengaluru and London.
2009: The consolidated debt of the airline accumulates to a massive Rs 5,665 crore that increases to Rs. 7,000 crore. Kingfisher keeps doing well and IDBI has a change of mind. The bank provides a loan of Rs 900 crore to the airline.
November 2010 – Banks give the airline an ultimatum of nine months to pay back the entire loan amount. Mallya is now a Rajya Sabha MP.
2011 – 2012: Each year, Mallya takes a salary of Rs. 33.46 crore from Kingfisher Airlines. The license of the airline is then revokes and thus the airline stops to pay salaries of its employees.
Till March 2016, the total owed amount to employees for Kingfisher Airlines was Rs 3000 crore payable to 3000 employees. It owes an amount close to a billion dollars to IDBI and SBI as loan.
March 2013 – The net worth of Kingfisher airlines goes under. The airline is valued at negative Rs.12,919 crore due to massive liabilities. A consortium of banks approaches UBHL for the payback of a loan amounting to Rs. 6,493 crore on behalf of Kingfisher Airlines. United Breweries is the promoter of Kingfisher Airlines. The consortium of banks is led by SBI. Mallya provides an assurance that the larger sum of the amount owed to the banks will be settled soon.
2014: Mallya is branded a willful defaulter by United Bank of India. SBI an Punjab National Bank do the same.
November 2015 – Finance Minister Arun Jaitley reveals that the total amount owed by Kingfisher is Rs 9,091.40 crore.
April 2015 – Mallya’s personal aircraft is sold by Mumbai International Airport Private Limited for a recovery of funds owed. The aircraft is sold for Rs. 22 lakh. The airline is held accountable for non-payment of loans of Rs 115 crore by the Service Tax Department. The Department takes the complaint to Bombay High Court which orders the seizure of Mallya’s passport
February 2016 – United Spirits Board asks him to quit his position.
March 2016: A consortium of banks seeks to move Supreme Court of India to stop Mallya from escaping from the country. Mallya had, meanwhile, left the country on March 3 for the UK and took refuge in London.
A special magistrate’s court issues a non-bailable arrest warrant against the liquor baron who failed to appear in court hearings for several cases pending against him.
April 2016: Enforcement Directorate requests a special court in Mumbai to issue another non-bailable arrest warrant. The warrant sought by ED is for crimes under Prevention of Money Laundering Act, 2002. Court grants warrant to ED. Meanwhile, reports emerged that Mallya had siphoned off nearly $590 million out from India. India revokes Mallya’s diplomatic passport, freezes international travel.
July 2016: Diageo pursues Vijay Mallya for diversion of funds from its Indian subsidiaries to one of Mallya’s entities. The firm seeks recovery of an estimated £138m.
November 2016: PMLA special court declares Vijay Mallya an absconder. He had already been declared a proclaimed  offender in June the same year.
January 2017: CBI arrests former chairman of IDBI bank and some executives of IDBI and Kingfisher.
February 2017: United Breweries asks Mallya to resign as chairman. India sends extradition request to UK.
March 2017: UK clears India’s request to extradite Vijay Mallya to India after special request from the Ministry of External Affairs, Union Finance Minister Arun Jaitley and his ministry. India promises to be sensitive about issues if UK allows extradition of Mallya.
April 2017: Mallya dishonours multiple summons. The liquor baron is arrested by Scotland Yard in UK.

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