Mallya rearrested in London, freed on bail

Fugitive Indian tycoon Vijay Mallya appeared in a London court yesterday after being rearrested earlier in the day amid an ongoing extradition request from India, where he is accused of fraud.The flamboyant businessman, who co-owns Formula One team Force India, appeared at Westminster Magistrates’ Court after Indian authorities laid further money laundering charges.Dressed in a blue jacket and black trousers, Mallya spoke only to confirm his name and address and to reject the new extradition request, filed to take into account the latest charges.He was released on bail immediately after yesterday’s arrest.Mallya left India in March 2016 owing more than $1bn after defaulting on loan payments to state-owned banks and allegedly misusing the funds.Launching new extradition proceedings at the court, Mark Summers, the lawyer representing the Indian government, said the original allegations related to fraudulently obtaining and misusing funds.The new charges concerned the distribution of those funds, Summers said.“The government alleges for example some of the funds have ended up with the Force India Formula One team,” he said.Mallya was originally arrested and bailed in April following an extradition request from India in early February.Indian investigators demanded the 61-year-old be brought home to face fraud charges related to the bank defaults.Mallya insisted he was innocent and denied fleeing the charges in his homeland, following the legal hearing in London in June.“I deny all allegations that have been made and I will continue to deny them,” he said outside court.“I have not eluded any court. If it is my lawful duty to be here, I’m happy to be here,” he added.“I’ve given enough evidence to prove my case.”The money laundering charges, authorities in India believe, make the case for an extradition stronger.According to an ED official who asked not to be identified, yesterday’s arrest was based on the allegations of money laundering in the Kingfisher Airlines loan default case.The CBI’s case, on the other hand, is based on charges of criminal conspiracy and fraud.In June, ED filed a charge-sheet under the Prevention of Money Laundering Act (PMLA) in a PMLA court in Mumbai, stating that part of the loan given to Kingfisher Airlines by IDBI Bank Ltd was diverted through 13 shell companies.On September 25, ED said it was preparing to file a second charge-sheet against him in the same court.Mallya diverted most of the money he borrowed from a State Bank of India-led consortium of lenders to shell companies in half-a-dozen countries, ED officials said then.Known for his lavish lifestyle, Mallya made Kingfisher beer a global brand and ran a now-defunct airline with the same name.Mallya stepped down as the director of the Indian Premier League cricket team Royal Challengers Bangalore last year.His financial dealings are being investigated by the Central Bureau of Investigation and the Enforcement Directorate, a financial crimes agency.Mallya was once known as the “King of Good Times” but dropped off India’s most wealthy list in 2014, engulfed by the massive debts of his grounded carrier Kingfisher Airlines.He has been living in a sprawling $15mn mansion in southeast England but has denied absconding.The next hearing in his case will take place on November 20 with a full eight-day extradition hearing due to start on December 4.