1. Kingfisher Airlines Debacle:
One of the most high-profile financial troubles associated with Vijay Mallya was the collapse of Kingfisher Airlines. The airline, launched with great pomp and luxury, faced severe financial difficulties and eventually ceased operations in 2012. It left unpaid debts, employee salary arrears, and a trail of financial turmoil.
2. Loan Default and Debt Accumulation:
Vijay Mallya faced allegations of defaulting on loans worth billions of dollars owed to various Indian banks. His financial troubles were linked to loans provided to his companies, including Kingfisher Airlines and the now-defunct Kingfisher beer brand. These loan defaults led to a significant financial crisis for the banks involved.
3. Fleeing India:
In 2016, as the pressure from creditors and legal authorities mounted, Vijay Mallya left India for the United Kingdom, where he was eventually arrested. His departure from the country sparked a major legal and financial controversy as Indian authorities sought his extradition to face charges in India.
4. Legal Battles and Extradition Proceedings:
Vijay Mallya faced a series of legal battles, including extradition proceedings, in the United Kingdom. The Indian government sought his return to face charges of financial irregularities and loan default. These legal proceedings were protracted and drew international attention.
5. Liquidation of Assets:
In India, authorities have sought to liquidate Mallya's assets to recover the debts owed to banks. This has involved the auction of properties and assets associated with Mallya, as well as legal efforts to reclaim funds.
These are some of the key financial troubles and controversies that have surrounded Vijay Mallya's business and financial dealings. His case remains a subject of significant public interest and debate in India and the United Kingdom.