Vijay Mallya arrested then bailed in London

Vijay Mallya, the former chairman of United Spirits, was arrested then bailed on security of £650,000 after appearing in court in London yesterday.

Vijay Mallya was arrested then bailed in London yesterday

Mallya was arrested by the Metropolitan Police on behalf of the Indian authorities over fraud accusations in relation to his defunct Kingfisher Airlines.

Kingfisher made annual losses for five years and collapsed after lenders refused to pump more money into the business. The airline was grounded in 2012 and its flying permit lapsed the following year.

Mallya appeared at Westminster Magistrates’ Court in London yesterday and a case management hearing has been scheduled for 17 May.

India has been seeking the extradition of the former Indian MP, who is said to owe a consortium of banks around £600m in unpaid loans.

Mallya Tweeted yesterday: “Usual Indian media hype. Extradition hearing in court started today as expected. Surrender of passport, arrest, bail all part of normal extradition proceedings.”

Last April India revoked Mallya’s passport and began seeking his extradition from the UK.

Mallya resigned as chairman and non-executive director of United Spirits – India’s largest spirits company and a subsidiary of Diageo – last February following a vote of no confidence from the board.

Diageo agreed to pay the 61-year-old a $75 million severance package to “bring to an end the uncertainty relating to the governance of USL”. He received $40m initially, which he gifted to his three children, and will be paid the remaining sum in installments over five years, according to the agreement.

Mallya made his fortune selling beer under the Kingfisher brand before branching out into aviation and Formula 1. He is the co-owner of F1 team Force India and owns the Indian Premier League cricket franchise Royal Challengers Bangalore.