New Delhi – Controversial Indian businessman Vijay Mallya, who is wanted in his country for defaulting on loans, was briefly arrested in London on Tuesday and now faces extradition to India.
Mallya owes more than 1 billion dollars in unpaid loans to a consortium of primarily state-owned banks, taken out for his company Kingfisher Airlines, which collapsed in 2012.
A former lawmaker with a stake in the Force India F1 team, the 61-year-old fled the country in March of last year.
A statement from Britain’s Metropolitan Police said officers arrested Mallya in response to an extradition request from Indian authorities in relation to accusations of fraud.
Indian authorities have revoked Mallya’s passport, which means that he cannot travel anywhere except to India.
He was produced before a Westminster Magistrates’ Court and later released on bail, India’s junior finance minister, Santosh Gangwar, told reporters in New Delhi.
Mallya confirmed on Twitter that the extradition hearing in court started on Tuesday “as expected.”
Broadcaster CNN-News18 reported Mallya was granted conditional bail pending a deposit of 650,000 pounds (829,000 dollars) and the next extradition hearing was fixed for 17 May.
Indian investigators have charged Mallya with loan fraud and money laundering. The Central Bureau of Investigation said Mallya had diverted millions of dollars of loans he claimed to have taken out to buy aircraft parts.
Indian banks were unsuccessful in their attempts to recover his unpaid loans. He repeatedly refused to appear before courts and investigators in India.
Mallya has refuted allegations of financial irregularities and accused the Indian government of declaring him guilty “without a trial.”
A long-standing chairman of India’s top spirits company, United Spirits, Mallya was popularly known as “King of the Good Times.” He stepped down from the position after a deal with its new owner, Britain’s Diageo.
The flamboyant industrialist, known for his lavish lifestyle, is thought to have been staying at his sprawling mansion near London.
– dpa
