Vijay Mallya: The Rise and Fall of a Business Tycoon

Table of Contents

• Introduction
• Kingfisher company
• Vijay mallya sca
• Loan taken by him
• Recent news
• Conclusion

Introduction

Who is vijay mallya?Vijay Mallya is an Indian businessman at present fighting extradition from the UK. Mallya, who owes 17 Indian banks an estimated Rs 9,000 crore, is accused of fraud and money laundering in the  country.Also a former Rajya Sabha member, Mallya is the ex-chairman of United Spirits. Of all his businesses, Vijay Mallya’s name is most closely associated with now defunt Kingfisher Airlines. The airline company, launched in 2005, proved to be his undoing, as its business model floundered in 2008, when a global recession and soaring fuel prices brought it to a grinding halt.Facing heat from lenders following the collapse of the airline, Mallya fled to the UK in 2016. Mallya has publicly offered to make good on his debts and said he has been doing so since 2016.

Kingfisher Overview!

Kingfisher is an Indian brand owned by United Breweries Holdings Limited (UBHL) or UB Group Bangalore based Indian Company. UB group has several businesses but its core business is beer, aviation, and investment.UB Group markets its beer product under the brand name of kingfisher, UB groups also owns several brands of beers. Kingfisher was launched in 1978 and now it is the largest beer producer of India with market shares.Kingfisher beer is also sold in many other countries. UB

group also launched Kingfisher airlines in India. Till December 2011 Kingfisher Airlines had the second largest market share in India’s domestic air travel. The company closed its operations in India after its inspections.

Vijay mallya scam(facts)

Vijay Mallya wants to expand his liquor and Airline business. His advisors advise him not to do this but

despite his advisor’s advice, he does the same. He sold another company formed by his father to fund its airline company.Vijay Mallya’s kingfisher becomes India’s no. domestic airline company and first choice of every passenger. Due to some restrictions, the Indian Government did not allow kingfishers to fly international flights.To fly international flights he leveraged United Spirits or United Breweries to buy Deccan Air which is a loss-making company and merged it with Kingfisher Airlines but it could not make the profits thus in 2010 Malaya’s this business was in heavy loss.To run the business he continuously took loans from banks. He took loans of 9000 crores by 17 banks.

Loans

• 600 crores from SBI
• 800 crores from PNB
• 800 crores from IDBI
• 650 crores from bank of India
• 550 crores from bank of baroda
• 430 crores from union bank of India
• 410 crores from central bank of India
• 320 crores from UCO bank
• 310 crores from corporation bank
• 150 crores from bank of mysore
• 90 crores from federal bank
• 140 crores from overseas bank
• 60 crores from punjab and sind bank
• 50 crores from axis bank

Recent news

Mumbai court issues non bailable Warrant against Fugitive businessman ,Vijay mallya In connection with a loan default case.

Conclusion

The case delay only proves the misuse of laws and proceedings by the rich. The banks, which otherwise acted cautiously, had lost most of their reputation. This case would act precedent to the future. So the government has to make sure that such events do not repeat and should extradite Mallya and set a benchmark for any future cases. The extradition is generally adapted only to lessen the burden of finding guilty of the accused that flee to another country to evade the arrest, so in such cases, the delay even in extradition would only bring further degradation to the law and justice. The Mallya case should be re-corrected and he is tried for the offences he committed in the Indian court and the dues.

AUTHOR:

Shivangi Mahajan, 

BBA.LLB, 2nd year,

Chandigarh law college