Fugitive liquor baron Vijay Mallya an Indian business tycoon and former politician, is facing legal action for allegedly defaulting on nearly $1.2 billion (Rs. 9,000 crore) of bank loans. Mallya faces charges of cheating, criminal conspiracy, money laundering and diversion of loan funds. A few of his companies, including Kingfisher Airlines, face charges of violating The Companies Act, 2013, and norms laid down by the capital markets regulator. Central Bureau of Investigation (CBI) accused him for 420 as cheating and 120B as a criminal conspiracy under the Prevention of Corruption Act in section 13(1) & 13(2) of the Indian Penal Code. But he argued that the case has a political motive.
How he established his expire
Vijay Mallya started his (KFA) Kingfisher Airlines business on his son Siddharth 18th birthday for him even after getting a warning from his advisers that not to start a new business, but he wanted to expand his business. He merged USL(United Spirits Ltd) and UB(United Breweries) with KFA while taking advantage of Deccan Air continuously making losses. For funding, he sold his father Vittal Mallya some companies and United Engineering. However, Vijay Mallya’s son is a playboy and do not know about managing the company.
Trap of fraud
To allegedly fund the KFA, VM took loans from many different banks. However, he used all the loan money for buying team and properties throughout the world. Banks started taking actions, but then he entered and became a member of Congress sponsored Rajya Sabha. So the bank stops and gives him another chance. At the time of losses under the Congress Government pressure, IDBI gives him a loan of Rs 900 crores again.
However, was held by PF, Employees of Income Tax, passengers of service tax, but did not submit himself to any authorities. He again became a member of Rajya Sabha for two reasons firstly to avoid inquiries and secondly to make a diplomatic passport in 2010. He became its independent candidate who was supported by JDS (Deve Gowda) at that time. Then in 2014, when the new government came of PM Modi and start tracking bank defaulters and fraudulent. He became scared, while using of diplomatic passport ran away from India, ran away from India. Now he refuses to return.