Biography of Vijay Mallya: Indian Fugitive Businessman, Industrialist & Politician
Former chairman of United Spirits
Biography of Vijay Mallya:
Born into a family with a background in the alcoholic
beverages industry, Mallya rose to prominence as the former chairman of United
Spirits, India's largest spirits company. He also chaired the United Breweries
Group, a conglomerate with interests in alcohol, aviation infrastructure, real
estate, and fertilizer sectors.
Mallya's influence extended beyond beverages; he held
chairmanships at Sanofi India (formerly Hoechst AG and Aventis) and Bayer
CropScience in India for over two decades. His tenure marked significant
contributions to these sectors.
Known for his ambitious ventures, Mallya founded and owned
the now-defunct Kingfisher Airlines, which faced financial troubles leading to
its closure. He also co-owned the Force India Formula One team and owned the
Royal Challengers Bangalore cricket team, showcasing his diverse business
interests.
Early Life and Education
Vijay Mallya was born into a prominent Kannada-speaking
family in Bantwal, Mangalore, Karnataka, to Vittal Mallya, the Chairman of the
United Breweries Group. He received his early education at La Martinière
Calcutta and later attended St. Xavier's College in Kolkata, graduating with a
Bachelor of Commerce degree with honors in 1976. During his college years, he
gained practical experience through internships within his family's businesses
and at Hoechst AG in the United States after graduation.
Personal Life and Relationships
In 1986, Mallya married Samira Tyabjee, an Air India air hostess,
with whom he has a son named Siddharth, born in 1987. The marriage ended in
divorce shortly thereafter, though Mallya maintains a positive relationship
with his first wife. In June 1993, he married Rekha, whom he had known since
childhood. They have two daughters, Leanna and Tanya. Rekha has two children
from previous marriages, Leila and Kabir, whom Mallya adopted. Reports suggest
Mallya is preparing for a third marriage to former Kingfisher Airlines
air-hostess Pinky Lalwani.
Vijay Vittal Mallya, known for his expansive business
ventures, has left a lasting mark on India's corporate landscape, despite
facing significant legal challenges.
Early Leadership and Expansion
Following his father's footsteps, Vijay Mallya took over as
chairman of United Breweries Group in 1983 at the age of 28. Under his
leadership, the conglomerate expanded to encompass over 60 companies, achieving
substantial growth with an annual turnover that soared to US$11 billion by
1998–1999. Mallya diversified the group's portfolio by acquiring Berger Paints,
Best and Crompton, Mangalore Chemicals and Fertilisers, and media ventures like
The Asian Age and Cine Blitz.
Influence in the Beverage Industry
United Breweries Group, chaired by Mallya, commands a
dominant position in India's beverage alcohol sector with its iconic Kingfisher
beer holding over 50% market share domestically. The brand has also made
significant inroads internationally, establishing itself as a leading Indian
beer in 52 countries worldwide.
Leadership at United Spirits
Mallya's tenure as chairman of United Spirits Ltd saw the
company achieve global recognition, reaching milestones such as selling 100
million cases and becoming the world's second-largest spirits company by
volume. In 2012, amidst financial pressures, Mallya ceded management control to
Diageo, a global spirits giant, while retaining a minority stake. However,
legal disputes in India have since complicated his financial arrangements,
including a blocked severance payment following his resignation as chairman in
2015.
Rise and Fall of Kingfisher Airlines
Established in 2005, Kingfisher Airlines was a significant
venture launched by Vijay Mallya. However, the airline faced financial turmoil
and eventual insolvency, leading to its closure. By October 2013, it had not
paid salaries for 15 months, lost its operational license, and accrued debts
exceeding US$1 billion in bank loans.
Legal and Financial Troubles
By November 2015, Kingfisher Airlines' debts to banks had
escalated to over $1.35 billion, coupled with additional liabilities to tax
authorities and numerous creditors. Mallya faced accusations under Indian law,
including charges of willful default, money laundering, and misappropriation,
stemming from the collapse of the airline.
Biography of Vijay Mallya: Indian Fugitive Businessman & Politician/Alcoholic beverages/RCB Team/Rise & Fall of vijay mallya/story of vijay mallya
Escalating Legal Issues
In March 2016, a consortium of banks sought to prevent
Mallya from leaving India due to outstanding debts. Media reports indicated he
had already departed the country. Subsequently, non-bailable arrest warrants
were issued against him in Hyderabad and Mumbai, prompting legal challenges
from his side while he resided at his estate near London.
Asset Attachments and International Legal Pursuits
The Enforcement Directorate in India took extensive
measures, attaching approximately ₹96.61 billion (US$1.2 billion) worth of
Mallya's assets by December 2016, one of the largest actions under the
Prevention of Money Laundering Act. Letters rogatory were sent to the US, UK,
and Europe for assistance in seizing over ten foreign assets linked to Mallya.
Settlement Offer and Continuing Legal Battles
In July 2020, reports surfaced that Mallya proposed a
settlement package of ₹139.60 billion (approximately US$2.0 billion in 2023) to
Indian bankers pursuing litigation against him, surpassing the principal amount
owed. However, this offer was not accepted, prolonging the legal saga
surrounding Mallya's financial obligations and legal liabilities in India.
Vijay Mallya's foray into politics was marked by significant
affiliations and controversy, reflecting his dynamic career.
Party Affiliations and Leadership
Initially a member of the Akhila Bharata Janata Dal, Mallya
transitioned to the Janata Party led by Subramanian Swamy in 2003. He served as
the National Working President of the party until 2010, showcasing his
involvement in political leadership at a national level.
Rajya Sabha Tenure
Mallya was elected twice to the Rajya Sabha, the upper house
of India's Parliament, representing Karnataka. His first election in 2002 was
supported by the Janata Dal (Secular) and Indian National Congress, followed by
re-election in 2010 with the backing of the Janata Dal (Secular) and BJP. His
political roles underscored his influence and strategic alliances within
Karnataka's political landscape.
Resignation and Legal Issues
In May 2016, amidst mounting legal troubles and
controversies, Mallya resigned from his position as a Rajya Sabha MP. This
decision came shortly after the Rajya Sabha ethics panel recommended his
expulsion, citing breaches of conduct. His departure from India and the
revocation of his passport further intensified scrutiny and legal proceedings
against him.
Controversies and Departure
Mallya's resignation letter highlighted his concerns about
fair treatment under Indian law, citing misinformation provided to
parliamentary committees. His subsequent departure from India amidst financial
probes and legal battles added to the intrigue surrounding his political and
business activities.
The "King of Good Times" Era
Once celebrated as the "King of Good Times" for
his lavish lifestyle, Vijay Mallya and his business empire faced escalating
controversies and financial scandals starting around 2012. His companies became
embroiled in multiple legal and financial challenges, marking a downturn from
his earlier glamorous image.
Departure from India and Legal Battles
In March 2016, amidst mounting legal pressures, Mallya left India
citing a desire to be closer to his children in Britain. This move came as 17
Indian banks sought to recover approximately ₹90 billion (US$1.1 billion) in
loans allegedly diverted by Mallya to gain stakes in about 40 companies
globally. Investigations by agencies like the Income Tax Department and the
Central Bureau of Investigation intensified, focusing on allegations including
financial fraud and money laundering.
Passport Revocation and Resignation
The Ministry of External Affairs of India revoked Mallya's
passport on 24 April 2016, triggering a series of legal actions. He resigned
from the Rajya Sabha on 2 May 2016, just before the Ethics Committee was set to
recommend his expulsion. The Enforcement Directorate pursued an international
arrest warrant through Interpol, highlighting the severity of the legal pursuit
against him.
Legal Status and Proclaimed Offender
In June 2016, the Prevention of Money Laundering Act (PMLA)
court declared Mallya a "proclaimed offender" at the Enforcement
Directorate's request. This declaration was linked to investigations into an
alleged ₹90 billion (US$1.1 billion) loan default case, further deepening his
legal predicament.
Impact on Force India Formula One Team
Beyond aviation and financial sectors, Mallya's involvement
extended to Formula One, where he co-owned the Force India team from 2007 to
2018. The team faced financial instability and entered administration during
the 2018 season. Its assets were later acquired by Racing Point F1 Team,
continuing to race under the Force India name for the remainder of the season.
Lifestyle and Religious Beliefs
Known for his extravagant lifestyle, Mallya is reported to
lead a spiritual life alongside his public persona. He practices daily prayers
and observes the rigorous 42-day Sabarimala fast each year, clad in black
clothing. Mallya is a devoted follower of Sri Sri Ravi Shankar and the Art of
Living Foundation, highlighting his spiritual inclinations despite his
high-profile business ventures.
Philanthropic
Activities
Despite financial setbacks, such as the closure of
Kingfisher Airlines due to substantial losses, Mallya remains actively involved
in philanthropy. Notably, on his 57th birthday in 2012, he donated 3 kg of gold
bricks to the Venkateswara Temple in Tirumala and contributed ₹8 million for
gold-plated doors at the Kukke Subrahmanya Temple. These gestures underscore
his devotion to religious causes and charitable activities, reflecting his
commitment beyond his business endeavors.
Legal Battles and Extradition Challenges
Vijay Mallya's legal woes escalated dramatically following
accusations of fraud and financial impropriety, leading to multiple arrests and
ongoing extradition proceedings.
Extradition Proceedings and Court Battles
In April 2017, Mallya was initially arrested in London on
behalf of Indian authorities regarding allegations of fraud. Despite subsequent
releases on bail, legal challenges persisted, including accusations of money
laundering. An extradition appeal was filed, focusing on an estimated ₹90
billion (US$1.1 billion) bank fraud case. The final extradition hearing was
scheduled at Westminster Magistrate's Court, underscoring the severity of the
charges against him.
Property Disputes and Financial Penalties
Legal battles extended to property disputes, notably
involving a £20 million estate in London, contested by Indian banks seeking
recovery of dues. Despite assertions regarding ownership, settlements were
negotiated with stipulations for financial repayments and legal costs,
reflecting ongoing financial pressures.
Extradition Appeals and Court Decisions
Despite legal maneuvers and appeals, including a plea
rejected by the London High Court in April 2020, Mallya faced setbacks in
extradition proceedings. His final appeal in the UK Supreme Court affirmed the
extradition order, highlighting continued legal challenges and international
ramifications.
Contempt of Court and Sentencing
In a separate contempt of court case in July 2022, the
Supreme Court of India sentenced Mallya to four months in jail and imposed
fines for violating court orders regarding the transfer of funds to his
children. This decision underscored ongoing legal entanglements and financial
accountability.
Involvement in Leaked Financial Documents
Mallya's involvement in leaked documents such as the Panama
Papers and Paradise Papers further underscored scrutiny over offshore investments
and financial transparency.
The intricate legal battles and financial controversies
surrounding Vijay Mallya highlight a protracted legal saga involving
international extradition, financial penalties, and judicial scrutiny over
allegations of fraud and contempt of court.
