Vijay Mallya

Vijay Mallya
Mallya in 2008
Member of Parliament, Rajya Sabha
In office
1 July 2010 – 2 May 2016[1]
In office
10 April 2002 – 9 April 2009
Constituency Karnataka
Personal details
Born Vijay Vittal Mallya
(1955-12-18) 18 December 1955[2]
Kolkata, West Bengal, India[3][4][5][6]
Nationality Indian
Political party Independent
Spouse(s)
Sameera Tyabjee Mallya
(m. 1986; div. 1987)

Rekha Mallya (m. 1993)
Children Siddharth Mallya
Leanna Mallya
Tanya Mallya
Parents Vittal Mallya (father)
Lalitha Ramaiah Mallya (mother)
Residence London, England
Alma mater La Martinière Calcutta
St. Xavier's College, Kolkata
Occupation Businessman and politician
Signature
Nickname(s) King of Good Times[7][8]

Vijay Vittal Mallya (born 18 December 1955) is an Indian businessman and former politician who is the subject of an extradition effort by the Indian Government to return him to India from the UK to face charges of financial crimes. The son of businessman Vittal Mallya, he is the ex-chairman of United Spirits, the largest spirits company in India and continues to serve as chairman of United Breweries Group, an Indian conglomerate with interests including beverage alcohol, aviation infrastructure, real estate and fertilizer. He has been the chairman of Sanofi India (previously known as Hoechst AG and Aventis) and the chairman of Bayer CropScience in India for over 20 years, and the chairman of several other companies.[9]

Business and career

The son of businessman Vittal Mallya, is the ex-chairman of United Spirits, the largest spirits company in India and continues to serve as chairman of United Breweries Group, an Indian conglomerate with interests including beverage alcohol, aviation infrastructure, real estate and fertilizer. He has been the chairman of Sanofi India (previously known as Hoechst AG and Aventis) and the chairman of Bayer CropScience in India for over 20 years, and the chairman of several other companies.[9]

Mallya became the Chairman of United Breweries Group in 1983 at the age of 28, following his father's death.[10] Since then, the group has grown into a multi-national conglomerate of over 60 companies, with an annual turnover which increased by 64% over 15 years to US$11 billion in 1998–1999. He consolidated the various companies under an umbrella group called the "UB Group", spun off non-core and loss-making businesses and focused on the core business of alcoholic beverages. Over the years, he has diversified and acquired Berger Paints, Best and Crompton in 1988; Mangalore Chemicals and Fertilisers in 1990; The Asian Age newspaper and the publisher of film magazine, and Cine Blitz, a Bollywood magazine in 2001.[11]

United's Kingfisher beer has more than a 50% market share in India's beer market.[12] The beer is available in 52 countries outside India and leads among Indian beers in the international market.[12]

United Spirits Ltd, the flagship company of the UB Group, achieved the historic milestone of selling 10 crore (100 million) cases, becoming the second-largest spirits company in the world by volume under Vijay Mallya's chairmanship.[12] In 2012, Mallya ceded management control of United Spirits Limited to global spirits giant Diageo, although he retained a minority stake in the business.[13] In February 2015 Mallya was forced to resign as Chairman of United Spirits, and he contracted to receive a $75 million severance payment as part of that deal, but the courts in India have blocked that payment.[14][15]

Kingfisher Airlines, established in 2005, was a major business venture launched by Mallya.[16] It eventually became insolvent and had to be closed down.[17][18] As of October 2013, it had not paid salaries to its employees for 15 months, had lost its licence to operate as an airline, and owed more than US$1 billion in bank loans.[13] By November 2015 the amount owed to the banks had grown to at least $1.35 billion, and there were other debts owed for taxes and to numerous small creditors.[14] As part of the Kingfisher collapse, Mallya is accused of being a "willful defaulter" under Indian law, including accusations of money laundering, misappropriation, etc.[14][19]

In March 2016, a consortium of banks approached the Supreme Court of India to stop Mallya from going abroad due to the pending money his companies owed them. As per media reports, he had already left India.[20] On 13 March 2016 a court in Hyderabad issued a non-bailable warrant for Mallya's arrest, but it appears he is remaining at his country estate near London, England, while his lawyer contests the warrant with a higher court.[21][22] On 18 April 2016, a special court in Mumbai also issued an undated non-bailable Arrest warrant against the businessman. This was issued in response to a plea by the Enforcement Directorate on 15 April before the special court hearing cases under the Prevention of Money Laundering Act, 2002.[23] There were allegations on him that he transferred ₹4,000 crore (US$560 million) to tax havens.[24][25]

On 11 June 2016, the Enforcement Directorate (ED) reported it had "provisionally attached" ₹1,411 crore (US$200 million) rupees worth of Mallya's Indian assets and properties against unpaid loans totalling ₹807 crore (US$110 million).[26][27] On 3 September, it issued a second attachment order for a further ₹6,630 crore (US$920 million) worth of Mallya's assets, including a farmhouse, shares in United Breweries and multiple flats in Bengaluru valued at ₹565 crore (US$79 million).[28] By December 2016, the ED has attached a total of Rs 9661 crore worth of assets of Mallya and Kingfisher in India.[29] This is one of the largest attachment of assets made by the ED in a Prevention of Money Laundering Act case till now.[30] The ED also decided to send letters rogatory (LR) to the US, the UK and Europe requesting them to assist it in attachment of Mallya's over ten foreign assets.[31][32]

Political career

Mallya in 2010

Previously a member of the Akhila Bharata Janata Dal, Mallya joined the Subramanian Swamy-led Janata Party in 2003 and was its National Working President until 2010.[33][34][35] He was elected to the Rajya Sabha in 2002 as an independent member from his home state of Karnataka with the support of the Congress party and Janata Dal (Secular).

On 2 May 2016, Vijay Mallya resigned from his post as a Rajya Sabha MP, a week after the Rajya Sabha ethics panel declared that he should no longer be a member of the House and one day before the panel was set to meet again to recommend his expulsion.[1] He had left India during this time[36] and his passport had been revoked,[37] making his position unattainable. In his resignation letter, Mallya said he was "shocked that the Department of Financial Services, Ministry of Finance, Government of India has provided factually wrong information to a Parliament Committee" and that he was resigning because he had concluded that he would "not get a fair trial or justice".[1]

Controversy

Once called the "King of Good Times" due to his extravagant lifestyle, Mallya and his companies have been embroiled in financial scandals, and controversies since 2012.[36][38] Mallya left India on 2 March 2016 after saying he wanted to move to Britain to be closer to his children.[36] A group of 17 Indian banks are trying to collect approximately ₹9,000 crore (US$1.3 billion) in loans which Mallya has allegedly routed to gain 100% or a partial stake in about 40 companies across the world. Several agencies including the Income Tax Department and the Central Bureau of Investigation are investigating Mallya for charges including financial fraud and money laundering,[39][40][36][41] and the Attorney General said that Mallya's assets abroad are "far in excess to loans taken by him".[36] The 17 banks added a joint petition at the Supreme Court of India in March 2016 to try to prevent Mallya from leaving the country, but the Indian government indicated that he had already left. The Enforcement Directorate of India also filed a money laundering case against him in March 2016 for allegedly sending abroad some ₹900 crore (US$130 million) that had been loaned to his airline.[36]

On 24 April 2016, the Ministry of External Affairs (India) revoked Mallya's passport,[42][43] and he resigned from the Rajya Sabha on 2 May 2016, the day before their Ethics Committee was prepared to recommend his expulsion.[1] Currently the Enforcement Directorate is seeking Interpol to raise an international arrest warrant against Mallya.[44][45][46] Also, the High Court of Judicature at Hyderabad issued a non-bailable warrant against Mallya on 13 March 2016 for his failure to appear in the court regarding an allegation of cheating the GMR Hyderabad International Airport Ltd by issuing them a dishonoured cheque for ₹50 lakh (US$70,000).[47]

On 13 June 2016, the Prevention of Money Laundering Act (PMLA) court declared Mallya a "proclaimed offender" on a request by the Enforcement Directorate (ED) in connection with its money laundering probe against him in an alleged ₹900 crore loan default case.[48]

Mallya co-owned the Formula One team Sahara Force India from 2007 to 2018. In the middle of the 2018 F1 season, Sahara Force India went into administration due to financial trouble.[49] In August 2018, the team was renamed Racing Point Force India after a takeover of the team by Canadian billionaire Lawrence Stroll.[50][51] He is also known for having launched Kingfisher Airlines, a major business venture in 2005 that later became insolvent and was shut down in 2012. Mallya was a member of the Rajya Sabha, the upper house of the Parliament of India, for his home state Karnataka, India.

Accusations of fraud

On 18 April 2017, Mallya was arrested by the UK Metropolitan Police extradition unit "on behalf of the Indian authorities in relation to accusations of fraud", and was released on bail pending further consideration of the case.[52][53] On 9 May 2017, the Supreme Court of India found Mallya guilty of contempt of court and summoned him to appear on 10 July.[54] When he failed to appear, the Supreme Court said the contempt case would only proceed further after he is produced before the court.[55] Mallya dismissed the proceedings against him – calling the situation a "witch hunt".[56] He said "I have done absolutely nothing wrong. In fact I am glad that it is finally before a UK court and an impartial court. So we wait and see how it plays out."[56] In the meantime, he is not allowed to leave Britain, but he said that is no hardship for him.[56] He said "There's nothing to miss" for him about India, since his immediate family has all moved to England or the United States.[56]

On 3 October 2017, Mallya was arrested as part of a money-laundering case in London and was released on bail.[57]

An appeal to extradite him from Britain was filed on charges of bank fraud estimated at Rs. 9,000 crore. The final hearing on extradition will be held at the Westminster Magistrate's Court on July 31.

Mallya is on bail since his arrest on an extradition warrant in April 2017. Mallya is fighting an extradition case in the UK. On 16 June 2018 Vijay Mallya was ordered to pay £200,000 (Rs. 1.81 crore) to Indian banks by a United Kingdom court. He was also asked to pay money towards registration of worldwide freezing order and of Karnataka's Debt Recovery Tribunal (DRT).Vijay Mallya has to pay dues to 13 banks namely- SBI, BOB, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, J&K Bank, Punjab and Sind Bank, PNB, State Bank of Mysore, UCO Bank, UBI and JM Financial Asset Reconstruction Co. Pvt Ltd.[58]

Leaked documents

Mallya was named in the Panama Papers and Paradise Papers, leaked confidential documents relating to offshore investment.[59][60]

Personal life

Vijay Mallya is the son of Vittal Mallya[2] (a Konkani Goud Saraswat Brahmin from Bantwal, Karnataka) and Lalitha Ramaiah. Vittal Mallya was the Chairman of United Breweries Group.[61][38] Vijay Mallya was educated at La Martinière Calcutta, where he was appointed House Captain of Hastings house in his final year, and at St. Xavier's College, Kolkata,[2][62] where he graduated with a Bachelor of Commerce degree (with honours) in 1976.[2][63] While in college, Mallya interned in his family's businesses. After graduating, he interned at the American part of Hoechst AG in the United States.[64]

In 1986, he met and married Sameera Tyabjee, an air hostess of Air India. They have one son, Siddharth Mallya, who was born on 7 May 1987.[65][66] They were divorced shortly afterwards, although Mallya has stated in interviews that he has a "great relationship" with his first wife.[67] In June 1993, Mallya married his current wife Rekha, whom he had known since childhood, and together they have two daughters, Leanna and Tanya.[2][68][69] Rekha was previously married twice, and also has a daughter and son, Leila and Kabir, from a previous marriage.[61][69] Mallya adopted Rekha's daughter Leila.[66] He is reported to be preparing to marry for the third time, to former Kingfisher Airlines air-hostess Pinky Lalwani.[70]

Generally characterized as having an extravagant lifestyle, Mallya was reported in 2005 to be someone who prays every day and conducts the entire 42-day Sabarimala fast every year while wearing only black clothing, and to be a devout follower of Sri Sri Ravi Shankar and the Art of Living Foundation.[38]

Awards

Mallya has received several professional awards both in India and overseas:

See also

References

  1. 1 2 3 4 PTI (2 May 2016). "Vijay Mallya resigns from Rajya Sabha". The Hindu. Retrieved 2 May 2016.
  2. 1 2 3 4 5 6 Vijay Mallya Rajya Sabha MP Archived 13 May 2012 at the Wayback Machine. Mallyainparliament.in. (Retrieved 2014-06-04).
  3. ↑ "Vijay Mallya – Net Worth, Wife, House, Cars, Jet, Yacht". notjustrich.com. Retrieved 4 October 2017.
  4. ↑ "Vijay Mallya Birthday, Real Name, Family, Age, Weight, Height, Wife, Affairs, Bio & More". Notednames.com. Retrieved 4 October 2017.
  5. ↑ "How Vijay Mallya fooled Banks". oneindia.com. Retrieved 4 October 2017.
  6. ↑ "Vijay Mallya Wiki, Age, Bio, Height, Girlfriend, Wife, Worth, Assets – CelebWikiWorthBio". viralpeople.in. Retrieved 4 October 2017.
  7. ↑ Tsang, Amie; Kumar, Hari (18 April 2017). "Vijay Mallya, Once India's 'King of Good Times', Is Arrested in London". New York Times. Retrieved 7 March 2018.
  8. ↑ Bengali, Shashank; Parth, M. N. (18 April 2017). "India's former 'King of Good Times' beer baron Vijay Mallya, is arrested in London". Los Angeles Times. Retrieved 7 March 2018.
  9. 1 2 "10 Companies Vijay Mallya is a Director in". www.tofler.in. Retrieved 14 July 2017.
  10. ↑ Dalal, Mihir (26 February 2016). "How Vijay Mallya inherited an empire and proceeded to lose it". Mint. Retrieved 14 July 2017.
  11. ↑ Dalal, Mihir (9 November 2012). "Diageo-USL deal puts to test Mallya's credentials". Live Mint. Retrieved 30 July 2014.
  12. 1 2 3 4 5 6 "Accounting Policy, Bayer CropScience Ltd". Live Mint. Retrieved 2 June 2014. (section 4.1)
  13. 1 2 "India's Richest #84 Vijay Mallya", Forbes (accessed May 2014).
  14. 1 2 3 Narayan, Khushboo; Johnson, T A; Vikraman, Shaji (13 March 2016). "Vijay Mallya: Once upon a time there was a king". The Indian Express. Retrieved 13 March 2016.
  15. ↑ Rana, Preetika (8 March 2016). "Vijay Mallya's Severance Payment From Diageo Halted by Indian Tribunal". The Wall Street Journal. Retrieved 13 March 2016.
  16. ↑ "Is Vijay Mallya India's worst businessman?", FirstBiz (First Post Business), 27 September 2012.
  17. ↑ "Non-bailable arrest warrant issued against Vijay Mallya", The Hindu, 12 October 2012.
  18. ↑ "Cheques bounce case: Warrant against Kingfisher, Vijay Mallya on GMR's complaint", CNN-IBN, 12 October 2012.
  19. ↑ "What is Vijay Mallya accused of?". The Indian Express. 11 March 2016. Retrieved 13 March 2016.
  20. ↑ Mahapatra, Dhananjay (9 March 2016). "13 banks move SC to stop Vijay Mallya but he has already left India". The Economic Times. Retrieved 4 December 2017.
  21. ↑ "Hyderabad court issues non-bailable warrant against Vijay Mallya". The Times of India. 13 March 2016. Retrieved 13 March 2016.
  22. ↑ Suri, Sanjay (12 March 2016). "Vijay Mallya still at UK country home, seeks expensive legal opinion". CNN-IBN. Retrieved 13 March 2016.
  23. ↑ "Mumbai court issues non-bailable warrant against Vijay Mallya in money laundering case". IANS. ABP Live. 18 April 2016. Retrieved 19 April 2016.
  24. ↑ "Vijay Mallya Allegedly Transferred Rs 4,000 Crore To Tax Havens by fooling everyone". Act Now News.
  25. ↑ Dev Chatterjee & PTI (15 March 2016). "Did Vijay Mallya's company transfer Rs 4,000 crores to a tax haven?".
  26. ↑ Pandey, Devesh. "ED attaches assets worth Rs.1,411 crore of Vijay Mallya". The Hindu. Retrieved 26 February 2017.
  27. ↑ "Vijay Mallya properties worth Rs 1,411 cr. attached by ED". The New Indian Express. 11 June 2016. Retrieved 11 June 2016.
  28. ↑ "ED attaches Mallya's assets worth Rs 6,630 crore including his farmhouse, flats". The New Indian Express. 3 September 2016. Retrieved 3 September 2016.
  29. ↑ "Vijay Mallya's shares worth Rs1620 crore attached". Retrieved 24 January 2017.
  30. ↑ "Vijay Mallya PMLA case: ED seizes fresh assets worth Rs. 1,600 crore". Retrieved 24 January 2017.
  31. ↑ PTI. "Democracy liberal enough in U.K. for defaulters to stay: Jaitley". The Hindu. Retrieved 26 February 2017.
  32. ↑ "ED to send LRs for attaching Vijay Mallya's foreign properties". The Indian Express. 17 November 2017. Retrieved 24 January 2017.
  33. ↑ "Vijay Mallya joins Janata Party". Rediff.com. Retrieved 15 March 2016.
  34. ↑ India, Press Trust of (8 June 2010). "Vijay Mallya removed as Working President of Janata Party". Business Standard News. Retrieved 15 March 2016.
  35. ↑ "Steering clear of the limelight by Aravind Gowda". India Today. 26 February 2014. Retrieved 15 March 2016.
  36. 1 2 3 4 5 6 "Vijay Mallya Left Country On March 2, Government Tells Supreme Court". NDTV. Retrieved 14 July 2017.
  37. ↑ "Vijay Mallya's Passport Revoked By Ministry Of External Affairs". Huffington Post India. Retrieved 14 July 2017.
  38. 1 2 3 "Vijay Mallya: Mr High Spirits". www.rediff.com. Retrieved 14 July 2017.
  39. ↑ "Money laundering case: Fraud Office probes 17 firms who took loans to fund Vijay Mallya". The Indian Express. 2016-03-12. Retrieved 14 July 2017.
  40. ↑ "Vijay Mallya may have routed bank loans to invest in over 40 companies: report". Daily News & Analysis. 2016-04-30. Retrieved 14 July 2017.
  41. ↑ "Vijay Mallya: King of bad times". The Times of India. Retrieved 14 July 2017.
  42. ↑ "SBI seeks Vijay Mallya's arrest in Kingfisher loan default case". The Financial Express. 2016-03-03. Retrieved 14 July 2017.
  43. ↑ "Vijay Mallya's Passport Revoked By Ministry Of External Affairs". Huffington Post India. 24 May 2016. Retrieved 14 July 2017.
  44. ↑ "Could Interpol bring Vijay Mallya back to face justice in India?". Mail Online. Retrieved 14 July 2017.
  45. ↑ "ED seeks Interpol Red Corner notice against Vijay Mallya". The Indian Express. 2016-05-13. Retrieved 14 July 2017.
  46. ↑ Basu, Nayanima (2016-05-11). "External Affairs Ministry awaits ED notice to officially extradite Mallya". The Hindu Business Line. Retrieved 14 July 2017.
  47. ↑ "Hyderabad court issues non-bailable warrant against Vijay Mallya". The Times of India. Retrieved 14 July 2017.
  48. ↑ Saigal, Sonam (14 June 2016). "Court declares Mallya a proclaimed offender". The Hindu. Retrieved 4 December 2017.
  49. ↑ Cyrus Dhabhar. "Force India F1 Team Future Secured, Marks End Of Vijay Mallya Era". Car and Bike. Retrieved 24 August 2018.
  50. ↑ Andrew Benson. "Force India renamed Racing Point Force India for rest of 2018 season". BBC. Retrieved 24 August 2018.
  51. ↑ "Vijay Mallya quits as India's top representative to FIA". The Times of India. Retrieved 14 July 2017.
  52. ↑ "Indian tycoon Vijay Mallya bailed in UK". BBC News. 18 April 2017. Retrieved 14 July 2017.
  53. ↑ "Mallya extradition case hearing today in U.K." The Hindu. Retrieved 14 July 2017.
  54. ↑ "Vijay Mallya Misled Us On Wealth, Says Supreme Court, Hauls Him For Contempt". NDTV. Retrieved 14 July 2017.
  55. ↑ "SC demands Vijay Mallya's presence to proceed in contempt case". The Times of India. 14 July 2017. Retrieved 26 July 2017.
  56. 1 2 3 4 "Fugitive Vijay Mallya Who Owes the Country $1.4 Billion, Says There's Nothing to Miss about India". The Times of India. 14 July 2017. Retrieved 26 July 2017.
  57. ↑ "Vijay Mallya arrested in London in money laundering case, gets bail". The Times of India. Retrieved 4 October 2017.
  58. ↑ "Vijay Mallya ordered to pay £200,000 to Indian banks".
  59. ↑ Tandon, Suneera (7 November 2017). "The Indian superstars of tax haven leaks: Amitabh Bachchan and Vijay Mallya". Quartz India. Retrieved 9 November 2017.
  60. ↑ Moudgal, Sandeep; Kumar, Chethan (April 8, 2016). "Panama Papers: Vijay Mallya directly linked to firm in Virgin Islands". The Times of India. Retrieved 10 November 2017.
  61. 1 2 "Vijay Mallya". India.gov.in: National Portal of India. Archived from the original on 3 June 2013.
  62. ↑ Mathew, Fr. P.C., S.J., "Aims and Objectives Archived 18 September 2010 at the Wayback Machine.", St. Xavier's College, Kolkata (accessed May 2014).
  63. ↑ "The dethroned king of good times". The New Indian Express. Retrieved 14 July 2017.
  64. ↑ Giriprakash, K. (2014-04-15). The Vijay Mallya Story. Penguin UK. ISBN 9789351186229.
  65. ↑ "Sidhartha Mallya". Bornrich. 2011-12-21. Retrieved 14 July 2017.
  66. 1 2 "Unseen pictures of Vijay Mallya and wives". DailyBhaskar. 2012-11-27. Retrieved 14 July 2017.
  67. ↑ "My life is an open book: Vijay Mallya". Daily News & Analysis. 2006-04-21. Retrieved 14 July 2017.
  68. ↑ Parliamentary Profile. Archived 1 May 2014 at the Wayback Machine.. India.gov.in (18 December 1955). Retrieved on 2016-07-17.
  69. 1 2 "I do, I do, I do..." The Times of India. Retrieved 14 July 2017.
  70. ↑ Times of India report
  71. 1 2 3 "Genesis Profile Dr. Vijay Mallya Chairman". UB Group. Retrieved 3 June 2014. (p. 13)
  72. ↑ The Asian Awards Winners List. 3 November 2010. PRNewswire. PR Newswire Europe Limited (a United Business Media company). Retrieved 3 June 2014.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.