The Indian government has asked the UK to deport the liquor tycoon and self-styled “King of Good Times” Vijay Mallya after the collapse of his heavily indebted company, Kingfisher Airlines.
Vikas Swarup, a spokesman for the foreign ministry, told reporters that the government had written to the British high commission in Delhi, asking for Mallya to be extradited so that he could be present to face investigation under India’s anti-money-laundering law.
Unlike other top Indian businessmen who prefer to keep a low profile, 60-year-old Mallya has become a symbol of capitalist aspiration and extravagance in conservative India because of his flashy lifestyle. The liquor baron, who owns a Formula One team, frequently appears alongside models and actors and is seen as a wealthy playboy figure in India.
With Mallya refusing to leave the UK, Indian authorities risk embarrassment as banks face growing pressure to recover a string of bad loans, and Mallya’s case has been interpreted as a test of how India handles wealthy tycoons.
Mallya, who had a diplomatic passport as a member of parliament’s upper house, had his passport cancelled by the foreign ministry last Sunday. A special judge in Mumbai issued a non-bailable arrest warrant against him. He claims he has been “forced into exile” in the UK.
In an interview with the Financial Times, in Mayfair in central London, Mallya said: “We have always been in dialogue with banks, saying we wish to settle. But we wish to settle at a reasonable number that we can afford and banks can justify on the basis of settlements done before.
“By taking my passport or arresting me, they are not getting any money.”
Mallya has offered £440m as a final settlement, a figure he claims is “way, way in excess of the World Bank average for settlement of bad debts”.
According to the finance minister Arun Jaitley, Mallya owes a group of 17 state-run banks, led by the State Bank of India, around 90bn rupees ($1.34bn) in unpaid loans.
Creditors rejected the offer of partial repayment from Mallya, who had given a personal guarantee for the Kingfisher loan.
Mallya claims the government’s figure is an “inflated amount”, and Indian banks are refusing to settle because of public pressure against him. He said: “As professional bankers, they would like to settle and move on but, because of my image as portrayed, they are reluctant to be seen as giving me any discount.
“It will attract huge media criticism and inquiries by vigilance agencies in India.”
Banks had asked the supreme court to prevent Mallya leaving India in March, but the attorney general reported that Mallya had flown to London on 2 March.
Mallya claims he is not absconding, but prefers to stay safe in the UK rather than face “trial by media” in India. In a tweet on 11 March, he said:
Once a media witch hunt starts it escalates into a raging fire where truth and facts are burnt to ashes.
— Vijay Mallya (@TheVijayMallya) March 11, 2016
