India blocks Mallya’s passport

Pressure is mounting on former United Spirits owner Vijay Mallya after India ordered the suspension of his diplomatic passport late last week.

Vijay Mallya (Photo: Wiki)

The move is in response to Mallya’s continued failure to answer a summons from India’s Enforcement Directive, which investigates potential financial crimes.

As a member of india’s Upper House, the Senate, Mallya is entitled to travel on a diplomatic passport, but this has been suspended for four weeks as the battle intensifies with the banks owed approximately £1bn following the collapse of his Kingfisher Airline in 2012.

It is alleged that funds from United Spirits (USL), now controlled by Diageo, were diverted illegally in a forlorn attempt to prop up the airline.

Last month the banks obtained court restraints over payments in the £75m package to Mallya from Diageo in return for his resigning as USL chairman.

Having been declared a “wilful defaulter” by the courts more than a year ago, he left India last month just as his creditors were seeking a ban on his travelling abroad. He is now believed to be in Britain.

In March Mallya put forward a proposal for repaying about half his debts but this was rejected by the creditors. Now, unless he answers the Enforcement Directorate’s summons within a week, he faces having his passport rescinded permanently, which would further curtail his lifestyle, including following the Formula 1 grand prix circuit as joint owner of the Force India team.

Mallya’s private jet had previously been impounded by Mumbai International Airport in lieu of unpaid fees and last month it was sold at auction and is now being dismembered for scrap.