From Riches to rags: The Story of Vijay Mallya

Vijay Mallya is a fugitive Indian businessman. He is the subject of an Extradition effort by the Indian Government to return him from the UK to face charges of financial crimes of India.
Also known as "playboy of the east".

1. FROM RICHES TO RAGS: THE STORY OF VIJAY MALLYA

2. The Playboy of the East , Vijay Mallya is an Indian business baron , multibillionaire. Vijay Mallya owned India's biggest liquor company , a private jet , an Airbus and many other riches such as a fleet of luxury cars and a private yacht . Mallya is also a member of the Rajya Sabha , the upper house of the Parliament of India. Popularly known for having launched Kingfisher Airlines .

3. Achievements of Vijay Mallya Kingfisher beer Formula one team Kingfisher calendar Royal challenger Bangalore Biding for the country Member of Rajya Sabha Sword of Tipu Sultan Personal Assets ACHIEVEMENTS

4.   ACHIEVEMENTS

5. KINGFISHER KINGFISHER: A COLLECTIVE FAILURE OF THE SYSTEM 2005 : Launch of Airlines. 2007 : Kingfisher Acquired Air Deccan. 2010 : Restructuring of the Loan 2012 : Kingfisher, a non-performing asset. Kingfisher First Kingfisher Class Kingfisher Red

6. 2005: Launch of Airlines In 2005, Vijay Mallya launched Kingfisher. Kingfisher Airlines began its operations in 2005 with its inaugural flight from Mumbai to Delhi. Kingfisher Airlines was soon becoming an airline synonym with five star air travel. In2006,Kingfisher announced to offer its passengers with live in flight entertainment which was first of its kind.

7. 2007: Kingfisher Acquired Air Deccan in 2007, he bought the bleeding Air Deccan, India's first low-fare carrier. In the end of 2007 Kingfisher Airlines had acquired entire46% of Deccan Aviation in Air Deccan. 2008 was a good year for the airlines as things went well. During this time, Kingfisher also won numerous award sand was rated as India's Five star line.

8. 2010: Restructuring of the Loan By this time, Kingfisher have accumulated a huge debt. In 2010, Kingfisher Airlines turned into a non- performing asset for banks. The Airlines for the very first time declared issues in the cash flows. The blame however was laid on the rising costs of fuel. In that year, Kingfisher was not able to pay the fuel cost to the oil companies and salaries to the employees. :- It was because of this reason that pilots left Kingfisher for rival airlines.

9. 2012: Kingfisher Airlines declared a Non-performing Asset The year 2012 was the most turbulent year of all for Kingfisher Airlines. Just in the beginning of the year 2012, State Bank of India declared Kingfisher Airlines as a non-performing asset. After incurring huge losses, and failing to pay its employees, Kingfisher Airlines was grounded in October 2012 and its license was cancelled in December 2012 . DECLARED KINGFISHER AIRLINES

10. REASONS BEHIND FAILURE OF AIRLINES LACK OF STRATEGY RECESSION HIGH OPERATIONAL COST LACK OF DELEGATION SEPARATE TREATMENT TO AIR DECCAN DOWNFALL

11. WHAT KINGFISHER OWES TO BANKS? 9,000 Crore

12. A brief statement of the money Kingfisher owes to the banks… BANK Rs (in crores) SBI 1600 IDBI Bank 800 PNB 800 BOI 650 Bank of Baroda 550 United Bank of India 430 Central Bank 410 UCO Bank 320 Corporation Bank 310 State Bank of Mysore 150 Indian Overseas Bank 140 Federal Bank 90 Punjab & Sind Bank 60 Axis Bank 50 3 Other Banks 603 TOTAL 6963

13. Vijay Mallya’s side of the Story According to Vijay Mallya , statements made against him are biased. He made the following statements in the media, “ I have always lived an honorable life and the calumny notwithstanding, shall continue to do so. As to the allegations in media, all I can say is I hope some sobriety and sense will prevail and truth not held a hostage to TRPs.” Vijay Mallya Offers Rs 4000 Crore to Settle all his accounts.

14. However, the banks are not willing to settle for the amount being offered as settlements. According to the news reports, lenders together have decided that they want a minimum of Rs 4,900 crore to be paid up front, which the principal loan amount is granted to Vijay Mallya . The banks have further demanded the interest component as well. Now, that bankers has rejected his proposal to accept 4000 crore . It will be interesting to see how the government will recover the huge amount from Vijay Mallya who is out of the country on his diplomatic passport and living in UK on ILR basis.

15. EXTRADITION PROCEEDINGS The extradition proceedings were held regularly from 04.12.2017 to 10.12.2018 in the court of Senior District Judge (the Chief Magistrate). Mr. Mallya’s defended himself by making submissions claiming about business failure and that the trial against him was motivated by extraneous factors including media frenzy, political motivations etc. He also mentioned that the prison conditions in India did not conform to the European Convention on Human Rights (ECHR).

16. The Court was satisfied of merits of the case against Mr. Vijay Mallya and the other aspects of protecting human rights in Indian presence etc. The Court has observed that the conduct of Mr. Vijay Mallya constitute the offences of making false representation to make a gain for himself, conspiracy to defraud and money laundering . The conduct of Mr. Vijay Mallya is punishable in India by imprisonment for longer than 12 months. In the light of merits of the case the Extradition Court has passed judgment for Extradition of Mr. Vijay Mallya to India.

17. HIGHLIGHTS OF EXTRADITION ORDER Based on the evidence the court concluded that there was a prima facie case to answer for Mr. Mallya . It was further concluded that it was not a politically motivated trial and there was no evidence that Mr.Mallya’s extradition was being sought for extraneous considerations. The Court was satisfied with the assurances and materials provided by Govt. of India regarding prison and human rights conditions and ruled that the video of Arthur Road Jail, Barrack No 12 accurately portrayed adequately large space, high ceilings, fans, natural light, etc. The Court has also specifically made a positive mention about the impartiality and independence of Indian Courts. Finally , the Judge Ms. Emma Arbuthnot pronounced that she is making a recommendation to the UK Home Secretary to make a decision on ordering Extradition of Mr Mallya to India .

18. EXTRADITION TREATY REPUBLIC OF INDIA & UNITED KINGDOM According to Article 1 of the Extradition Treaty between India and the UK, it is the duty of India and the UK to extradite any person being accused or convicted of an extradition offence committed within the territory of one State either before or after the entry into force of this Treaty. Each contracting state shall afford each other mutual assistance in criminal matters.

19. Presently… Vijay Mallya says, “Please take your money, I request the banks with folded hands, take 100 percent of your principal back, immediately” he said outside the Royal Courts of Justice in London. Also, the present case is being heard in UK High Court and there is an option to appeal in Court of Appeal and then The last or the highest court of appeal is Supreme Court of UK. The decision of Supreme Court of UK will be binding on all the subordinate courts. After being unsatisfied Vijay Mallya has the rest two options to choose. By this, it shall take almost 4-5 years to bring back Vijay Mallya to India via Extradition Process as there is a principle of Natural Justice and he still have options to access

20. The Westminster Magistrate’s court, London has allowed his extradition to India. But he has filed an appeal in the UK High Court which is still pending.

21. EXTRADITION

22. IN THE PAST 26 YEARS, UK HAS EXTRADICTED ONLY ONE FUGITIVE TO INDIA. Samirbhai Vinubhai Patel was extradited to India in October 2016. He was wanted in one of the Gujarat riot cases of 2002. There are in around 28 fugitive economic offenders are living outside India, according to External Affairs Ministry. CBI pursuing the cases pertaining to 23 fugitives, the ED is handling 13 cases. Eight persons- Vijay Mallya , Mehul Choksi , Lalit Modi , Nirav Modi , Jatin Mehta, Ashish Jobanputra and many more.

23. INDIAN FUGITIVES LIVING IN UK Ramond Warley . Tiger Hanif . Nadeem Saifi . Ravi Sankaran . Lalit Modi . Vijay Mallya .

24. THANKYOU !! PRESENTED BY: MUSKAN MITTAL BA.,LLB. ( Hons .) 11815690