Beer Baron From India Denies He Fled to UK due to Debt
Mallya said that he did not flee India and is not an absconder. He said those accusations were rubbish. Mallya is the founder of Kingfisher Airlines and tweeted those responses on Friday.
He took over chairmanship of the massive beer business of his father back in 1983. He is the co-owner of a race team in Formula 1 and is described at times as the India’s Richard Branson.
However, he also owes as much as $1.3 billion in different loans that were made to Kingfisher Airlines, which is now defunct.
Seventeen banks have struggled to be paid back by the airline after it had failed back in 2012. Early this week, the banks asked the Supreme Court in India to ensure that Mallya remained in India.
However, Mallya already had departed. Media in India traced him to a location that is north of London.
On Friday, Mallya tweeted that he was an international businessman and travels in and out of India quite often.
The beer baron added that as a member of India’s parliament he fully respects and complies with the law of the land. He added that the countries judicial system was respected and sound.
The controversy involving the exit of Mallya from India raged at full throttle in the media of India Friday, as the country’s top parties traded barbs regarding the issue.
Arun Jaitley the Finance Minister for India said that the lenders dealing with Mallya including State Bank of India the lead creditor would make all efforts to recover all funds.
One analyst said that the government looked at this as if the clear instructions for the banks were to go all out and to take any possible action available to them.
Mallya was up to just recently, the United Spirits’ chairman. It is the Indian business for Diageo the liquor giant based in Britain.
Following acquisition of some impropriety, Diageo in February announced that Mallya agreed to resign with a guaranteed $75 million paid out over a period of five years.