Vijay Mallya arrested then bailed in UK
18th April, 2017 by Annie Hayes
United Spirits’s former chairman Vijay Mallya has been arrested and then bailed after appearing in a London court.
Vijay Mallya has been bailed on security of £650,000 after appearing in a London court
The tycoon was arrested on Tuesday (18 April) by the Metropolitan Police on behalf of the Indian authorities over fraud accusations.
Mallya entered the UK on a valid passport in March 2016, and appeared at Westminster Magistrates’ Court today (Tuesday 18 April). He has been bailed on security of £650,000, according to the BBC, while a case management hearing as been scheduled for 17 May.
In April 2016 India revoked Mallya’s passport, and began seeking his extradition from the UK the following month.
A statement on Mallya’s Twitter account said: “Usual Indian media hype. Extradition hearing in court started today as expected.”
Mallya resigned as chairman and non-executive director of Diageo-owned Indian drinks group United Spirits in February 2016, following a vote of no confidence from his own board.
Diageo agreed to pay Mallya a US$75 million severance package in order to “bring to an end the uncertainty relating to the governance of USL”.
He received US$40m initially, and will be paid the remaining sum in equal instalments over five years, according to the agreement.
Mallya reportedly gifted the money to his children, as a consortium of banks attempt to recover loans from the tycoon worth around £600m.