The news of the arrest of liquor baron Vijay Mallya in London on Tuesday for his alleged role in money laundering case created a sense of hope among the authorities in India who are trying their best to extradite him since he fled India on March 2, 2016, and since then has been staying in the United Kingdom.
Mallya owes more than Rs 9,000 crore to various banks and erstwhile employees of the now-defunct Kingfisher Airlines.
Before Tuesday, Mallya was arrested in London earlier in April by the Scotland Yard on an extradition warrant. However, he was granted bail hours after his arrest by the local magistrate’s court.
Mallya has continuously evaded the notices sent by different agencies and courts to appear for hearings prompting the court to issue an arrest warrant against him.
To make it easier for you, here is a timeline of how Vijay Mallya case progressed since 2005:
2005: Vijay Mallya, Chairman of United Breweries (Holdings) Limited starts a luxury airline–Kingfisher Airlines.
2006: Kingfisher Airlines applies for a loan with IDBI bank to buy aircraft. Mallya allegedly didn’t share the history with the bank related to his Mangalore Chemicals and Fertiliser Acquisitions in the past that led to the rejection of his proposal.
2007: Success of Kingfisher Airlines encouraged Mallya to take over Air Deccan.
2008: The official process of acquiring Air Deccan is finalized and United Breweries paid a markup of Rs 550 crore for their 26% stake in the entity, the deal that ultimately led to claims of bankruptcy filed by United Breweries.
2008: Kingfisher got a debt of Rs 934 crores due to rising oil prices, spiking working cost stress of a premium and a deteriorating airline.
2009: The consolidated debt of the airline accumulated to a whopping Rs 5,665 crore that further went up to Rs 7,000 crore. IDBI finally approved the loan request of Kingfisher and provided a loan of Rs 900 crore to the airline.
2010: Mallya became the Rajya Sabha MP but banks were mounting pressure on him and gave his airline an ultimatum of 9 months to pay back the entire loan amount.
2011: Mallya took a salary of Rs 33.46 crore from Kingfisher Airlines annually. Meanwhile, the license of the Kingfisher airlines had been revoked due to which it stopped paying salaries to its employees.
Until March 2016, the total owed amount to employees for Kingfisher Airlines was Rs 3000 crore payable to 3000 employees. It owed an amount close to a billion dollars to IDBI and the State Bank of India (SBI) as a loan.
2013: The Kingfisher airlines valued in negative at Rs 12,919 crore due to massive liabilities.
Led by SBI, a consortium of banks approached United Breweries Holdings Ltd (UBHL) for the payback of a loan amounting to Rs 6,493 crore on behalf of Kingfisher Airlines. Mallya gave an assurance that the larger sum of the amount owed to the banks would be settled at the earliest.
2014: Vijay Mallya had been branded as a willful defaulter by United Bank of India. SBI and Punjab National Bank also joined the chorus.
2015: The total amount owed by Kingfisher rises to Rs 9,091.40 crore.
April 2015: To recover the funds, Mumbai International Airport sold Vijay Mallya's personal aircraft for Rs 22 lakh.
The airline held accountable for non-payment of loans of Rs 115 crore by the Service Tax Department. The Department then took the complaint to Bombay High Court that ordered the seizure of Mallya’s passport.
March 2016: A consortium of banks sought to move Supreme Court to stop Mallya from escaping from the country. Mallya had, meanwhile, left the country on March 3 for the UK and took refuge in London.
November 2016: PMLA special court declared Vijay Mallya an absconder.
February 2017: India sent an extradition request to the UK that got cleared after the interference from the Ministry of External Affairs and Finance Minister Arun Jaitley.
April 2017: Mallya got arrested by Scotland Yard in the UK. However, he was granted bail hours after his arrest.
September 2017: Reports emerged that the CBI and Enforcement Directorate could be a step closer to make Vijay Mallya's extradition a success. The two organisations had been preparing a charge sheet against him that could strengthen India's case in the UK court.
Mallya allegedly diverted a large chunk of funds from the Rs 6,027-crore loan he took for his now- defunct Kingfisher Airlines from a consortium of banks led by State Bank of India.
The money was then diverted to shell companies in seven countries, including the US, UK, France, and Ireland, the report stated, citing the sources.
A UK court fixed November 20 as the date for the pre-trial hearing in the extradition case of Vijay Mallya.
India had given a formal extradition request for Vijay Mallya as per the Extradition Treaty between India and the UK through a note verbale on February 8.