Liquor baron Vijay Mallya has been arrested by Scotland Yard police from London on Tuesday. According to the initial reports, he will be taken into Westminster court. As per the reports, the flamboyant businessman is likely to be extradited to India. A CBI team will visit the United Kingdom soon. Vijay Mallya fled India in 2016 amid attempts by the group of bankers to recover the pending loans.
Earlier on Wednesday, Delhi Court issued an open-ended Non-bailable warrent against Mallya in connection to the Foreign Exchange Regulation Act (FERA-1995) violation case. During the hearing at the Patiala House Court, the Enforcement Directorate had told the Delhi court that Mallya’s appearance was necessary for the trial and the defunct FERA case was lodged by ED. In this case, the agency had issued summons to the business tycoon and had asked him to appear before it for the investigation purpose. ED had alleged that Mallya had violated the FERA regulation in connection with a transaction with Flavio Briatore of Benetton Formula Ltd based in London in 1995 to promote his brand Kingfisher on the foreign surface.
The Ministry of External Affairs (MEA) on March 24 had informed that the extradition of absconding businessman has been stratified by Secretary of State of the UK Government and soon a warrant would be released against him. ED had alleged that Mallya had violated the provisions of FERA in arranging funds to advertise his company’s liquor products abroad. The agency had claimed that the money was allegedly paid without prior approval from RBI in violation of FERA norms. Mallya had allegedly paid 200,000 dollars to the British firm for displaying the Kingfisher logo in Formula One World Championships in London and some European countries in 1996, 1997 and 1998.