Vijay Mallya loses extradition appeal in UK High Court, India one step closer to bringing him back

Beleaguered liquor baron Vijay Mallya on Monday lost an appeal in the UK High Court against his extradition, taking the Indian authorities closer to bringing him back to India where he faces alleged fraud and money laundering charges amounting to Rs 9,000 crore.

The 64-year-old Mallya has 14 days to apply for permission to appeal to the UK Supreme Court. 

This is a huge win for India as the dismissal of the High Court appeal effectively clears the decks for Mallya's extradition. 

In December 2018, the Westminster Magistrates' Court in London had ordered Mallya's extradition to India to face the charges brought up by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED). The Extradition was signed off by then UK Home Secretary Sajid Javid in February last year. 

The former Kingfisher Airlines boss had appealed to the higher court against his extradition ordered by the London Court at a three-day hearing in February this year.

A two-member bench of Lord Justice Stephen Irwin and Justice Elisabeth Laing at the Royal Courts of Justice in London dismissed the plea in a judgement handed down this week remotely due to the current coronavirus lockdown.

"We consider that while the scope of the prima facie case found by the SDJ [Senior District Judge Emma Arbuthnot] is in some respects wider than that alleged by the Respondent in India (CBI and ED), there is a prima facie case which, in seven important respects, coincides with the allegations in India," the ruling said.

The judgment noted seven main points around which they based their decision.

The judges said they found that the loans in question were disbursed as the result of a conspiracy between the named conspirators and that they were made despite Kingfisher Airline's weak financials, negative net worth and low credit rating.

"The Appellant was party to false representations to induce the loans that funds would be inducted by way of unsecured loans, global depository receipts and equity," the judges noted.

"The Appellant was party to false representations about inward investment, an exaggerated brand value, misleading growth forecasts, inconsistent business plans. The Appellant's dishonest intention not to repay the loans is shown by his later conduct in trying to avoid the personal and corporate guarantees," they said.

If Mallya challenges the judgment in the UK Supreme Court, the Home Office would wait for the outcome of that appeal before signing off on the extradition. But if he does not, the Home Office would then be expected to formally certify the court order for Mallya to be extradited to India within 28 days.