Mallya rearrested in London on money laundering charges

Vijay Mallya, the fugitive former head of India’s United Spirits, has been rearrested in London on money laundering charges.

During the proceedings on Tuesday, Mallya was presented with fresh charges at a hearing at Westminster Magistrates Court. He has been released on bail.

The Crown Prosecution Service acted at the request of the Indian government in bringing the new money-laundering charges and “joining them to the original fraud charges”.

“The new charge is essentially showing where the money went to,” the CPS said in a statement.

“For example, it is alleged that some of the funds ended up with the Force India racing team”. Mallya is the principal of the F1 team.

The new charges were trailed in the Indian media two weeks ago and reported in the drinks business. Insiders say they provide further evidence of the alleged offences by the former liquor baron.

Mallya fled to Britain in March 2016 and faces an extradition hearing which will begin in London, early in December.

The case against him is that he defrauded a group of banks by diverting loans made to his Kingfisher Airline to offshore and nominee accounts. Kingfisher collapsed in 2012 with estimated debts of more than £1bn including interest. Mallya has already been found guilty in his absence of contempt of India’s supreme court.

In addition, United Spirits, now majority owned by Diageo, is seeking restitution of substantial funds from Mallya which it says he diverted wrongfully from the company.

Mallya has always denied the charges against him saying they are politically motivated. The Indian government is keen to have Mallya extradited to answer the charges against him. This is seen as central to its campaign to clampdown on corruption and crony capitalism.

However, India has a poor record of success in such cases, so the latest charges and evidence are seen as an attempt to reinforce the case against Mallya.