Vijay Mallya: Troubled times for King of good times!
In October 2012, Kingfisher Airlines had to be grounded in October 2012 due to a severe financial crunch. Ever since Mallya’s woes have only worsened. Here’s a look
The latest development is that Mumbai International Airport Private Limited (MIAL) has auctioned one of Mallya’s prized possessions, an 11-seater jet, which is now being taken apart for scrap. The jet, which was once a sign of Mallya’s prosperity, was auctioned for Rs 22 lakh as part of MIAL’s bid to recover airport dues accumulated by the now-defunct Kingfisher Airlines.
In October 2012, a court in Hyderabad issued a non-bailable arrest warrant against Mallya, and four others for non-appearance in cases relating to bouncing of cheques issued in favour of GMR Hyderabad International Airport Limited (GHIAL) towards user charges. Four cheques totalling Rs.10.5 crore were issued to GHIAL, which operates Rajiv Gandhi International Airport. But, they were dishonoured when presented for clearance.
In December 2012, Mumbai airport authorities seize Kingfisher planes over non-payment of dues, and stated that they will not be permitted to fly till the full dues are cleared.
In June 2013, Mallya reportedly told the striking employees, “I don't have the money to pay your salary dues, because I cannot use the proceeds from the United Spirits-Diageo deal for this due to an injunction from the Karnataka High Court.”
In February 2014, Mallya, the owner of IPL franchise Royal Challengers Bangalore, lodged an official complaint with the IPL Governing Council, saying his franchise coughed up Rs 4 crore more on buying all-rounder Yuvraj Singh on the first day of the IPL 7 players' auction. RCB had almost bought Yuvraj for Rs 10 crore when Kolkata Knight Riders joined in the bidding, and eventually the left-handed batsman was sold for Rs 14 crore to the Bangalore outfit. Mallya, however, said that the hammer had fallen at Rs 10 crore for Yuvraj.
In July 2014, unable to recover over Rs 50 crore dues from Kingfisher Airlines, the services tax department moved courts to get a share from sale of securities being undertaken by lenders.
In September 2014, Mallya dropped out of Forbes list of India’s 100 richest club. Earlier in March 2013, Mallya was dropped from Forbes global rich list.
In September 2014, Kolkata-based United Bank of India (UBI) declared Mallya as a wilful defaulter after his grounded Kingfisher Airlines declined to repay its debt.
In January 2015, Mallya co-owned Formula One team Force India did not take part in F1’s opening pre-season test in Jerez apparently because of a financial crunch.
In January 2015, a contempt application was filed by a consortium of 17 banks in the Karnataka High Court against Mallya, his grounded airline Kingfisher Airlines and UBHL for allegedly violating an undertaking given to the Debt Recovery Tribunal (DRT) that they would not alienate unencumbered assets nor deal with them.