Business career
He is the ex-chairman of United Spirits, the largest spirits company in India, and continues to serve as chairman of United Breweries Group, an Indian conglomerate with interests including beverage alcohol, aviation infrastructure, real estate and fertilizer. He has been the chairman of Sanofi India (previously known as Hoechst AG and Aventis) and the chairman of Bayer CropScience in India for over 20 years, and the chairman of several other companies.[8]
The son of businessman Vittal Mallya, he became the chairman of United Breweries Group in 1983 at the age of 28, following his father's death.[22] Since then, the group has grown into a multi-national conglomerate of over 60 companies, with an annual turnover which increased by 64% over 15 years to US$11 billion in 1998–1999. Over the years, he has diversified and acquired Berger Paints, Best and Crompton in 1988; Mangalore Chemicals and Fertilisers in 1990; The Asian Age newspaper and the publisher of film magazines, and Cine Blitz, a Bollywood magazine in 2001.[23]
United's Kingfisher beer has a more than 50% market share in India.[24] It is available in 52 other countries, and leads among Indian beers in the international market.[24]
United Spirits Ltd, the flagship company of the UB Group, achieved the milestone of selling 100 million cases, becoming the second-largest spirits company in the world by volume, under Mallya's chairmanship.[24] In 2012, Mallya ceded management control of United Spirits Limited to global spirits giant Diageo, retaining a minority stake in the business.[25] In February 2015 Mallya was forced to resign as chairman of United Spirits, and he contracted to receive a $75 million severance payment as part of that deal, but the courts in India have blocked that payment.[26][27]
Kingfisher Airlines, established in 2005, was a major business venture launched by Mallya.[28] It eventually became insolvent and had to be closed down.[29][30] As of October 2013, it had not paid salaries to its employees for 15 months, had lost its licence to operate as an airline, and owed more than US$1 billion in bank loans.[25] By November 2015, the amount owed to the banks had grown to at least $1.35 billion, and there were other debts owed for taxes and to numerous small creditors.[26] As part of the Kingfisher collapse, Mallya is accused of being a "willful defaulter" under Indian law, including accusations of money laundering, misappropriation, etc.[26][31]
In March 2016, a consortium of banks approached the Supreme Court of India to stop Mallya from going abroad due to the pending money his companies owed them. As per media reports, he had already left India.[32] On 13 March 2016 a court in Hyderabad issued a non-bailable warrant for Mallya's arrest, but it appears he is remaining at his country estate near London, England, while his lawyer contests the warrant with a higher court.[33][34] On 18 April 2016, a special court in Mumbai also issued an undated non-bailable arrest warrant against the businessman. This was issued in response to a plea by the Enforcement Directorate on 15 April before the special court hearing cases under the Prevention of Money Laundering Act, 2002.[35] There were allegations on him that he transferred inr 40000000000 to tax havens.[36][37]
In June 2016, the Enforcement Directorate (ED) reported it had "provisionally attached" inr 14110000000 rupees worth of Mallya's Indian assets and properties against unpaid loans totalling inr 8070000000.[38][39] On 3 September, it issued a second attachment order for a further inr 66300000000 worth of Mallya's assets, including a farmhouse, shares in United Breweries and multiple flats in Bengaluru valued at inr 5650000000.[40] By December 2016, the ED has attached a total of inr 96610000000 worth of assets of Mallya and Kingfisher in India.[41] This is one of the largest attachment of assets made by the ED in a Prevention of Money Laundering Act case till now.[42] The ED also decided to send letters rogatory (LR) to the US, the UK and Europe requesting them to assist it in attachment of Mallya's over ten foreign assets.[43][44]
In July 2020, Indian media reported that Mallya had offered a settlement package of inr 139600000000 as against a total principal amount of inr 90000000000 to the consortium of Indian bankers pursuing litigation against him; this settlement was not accepted by the bankers.[45][46]
