Mallya extradition case: Kingfisher lied about financial health, court told

LONDON: Lawyers for India and controversial businessman Vijay Mallya sparred in the high court of England and Wales on Thursday, with the former accusing his defunct Kingfisher Airlines of “absolute and outrageous lies” while seeking bank loans, and the latter alleging “a series of errors” in India’s case.

The appeal is against the Westminster Magistrates Court’s December 18 judgement clearing his extradition to India to face charges of financial offences worth around 9000 crores.

Mallya, who has been on bail since his arrest in 2016, was present in court. Officials from CBI and ED were also present, besides those from the Indian high commission. The judgement is expected later this month.

According to Mark Summers, Crown Prosecution Service lawyer appearing for India, Mallya and Kingfisher Airlines submitted “absolute and outrageous lies” about projections of profitability and loss while applying to IDBI and SBI for loans in 2009, a proposition that was later disputed by Mallya’s lawyer, Claire Montgomery. “Profitability of the company was knowingly fudged (in loan applications)...”, he said.

Montgomery has insisted that Mallya’s inability to repay bank loans was due to a genuine business failure.

Outside the court, Mallya reiterated his intention to return “100% of the principal amount” taken as loan from the banks. According to him, the ED and the consortium of banks are vying among themselves for the same assets, which are frozen under several cases.