Vijay Mallya, a prominent Indian businessman, is accused of defrauding Indian banks of approximately $1.1 billion in loans taken for his now-defunct Kingfisher Airlines. He left India in 2016 as authorities investigated him for financial fraud and money laundering related to the loans. Since then, Indian authorities have sought his extradition from the UK and seized his assets in India to recover funds owed to banks. His extradition has faced delays due to legal appeals and other confidential matters.

1. VIJAY MALLYA BANKING FRAUD
(Security analysis and portfolio management )
NAME - DOLLY GARG (1012)
PRARTHNA BANSAL(1024)
LUV SINGHAL(1067)

2. Introduction
In the past decades, there have been many unethical conducts
in the businesses of various professions which affected the
public at large. Most of the scams and frauds are done by
influential people of the society and hence, have a great
impact. These scams and frauds by influential people form a
part of white-collar crimes.
These crimes include frauds, infringement of patents,
copyrights, trademarks, money laundering etc. The country has
witnessed the largest scams of the decade, one of them is the
Vijay Mallya Scam of Rs 9000 crores. Even after many efforts,
he has not been sent to the country for completion of the trial.

3. About Vijay Mallya
Vijay Mallya is the former Member of Parliament (Rajya Sabha)
and a famous businessman. He is the ex-chairman of United
Spirits and the chairman of United Breweries Group indulged in
beverage alcohol, fertilisers and real estate business. He is also
known to own a famous IPL team Royal Challenger Bangalore
for a long period of time. With his hard work, the company was
able to take a big leap in turnover making it 64% in 1999. He
also expanded his business outside the country in many foreign
countries and also acquired Berger paints in his name.

4. Scam In Detail

5. Scam In Detail
• Vijay Mallya’s banking scam has roots in following:
• Mallya’s quest for success.
• Mallya’s personal ambition superseding his business
interest.
• Banking loopholes.
• Corruption of Bankers and neglecting of true value under
the brand name.

6. What The Scam Is All About?
Kingfisher menace
Debt over load
Negligence of bank
Money Laundering

7. KINGFISHER
MENACE
TIMELINE
YEAR 2003
• START WITH KINGFISHER
YEAR 2005
• START WITH ITS 1st FLIGHT
YEAR 2007
• ACQUIRE AIR DECCAN
YEAR 2012
• AIR LICENSE WAS SUSPENDED

8. Kingfisher Menace
•In 2005 Mallya begin king fisher airline with a aim to provide
quality service at affordable price.
•Exceptional services and affordable rates made it Indias no.1
domestic flights.
•Unsustainable business model.
•Air Deccan acquisition:
• To expand kingfisher airline Mallya decide to take it to overseas.
• To achieve international plan it acquire Air deccan.
• Mismanagement in airlines as there are common routes and timing
between the two airlines.
• Due to high operating costs and low revenue the airline incur heavy
loses.
•Whopping losses has incurred in Airline business in 2010

9. Year 2003
• In year 2003 Vijay Mallya decided to expand its airines business and thus he came up with kingfisher
Airlines. Established in 2003, Kingfisher Airlines it wasn’t until 2005 that the airline took its first flight.
• Throughout its short career, Kingfisher Airlines never turned a profit. He has taken loans from 17 banks
highest from SBI amounting tom1600 hundred crores.
Year
2007
• Despite all this, the real turning point came about in 2007, when Kingfisher bought out failing Air
Deccan.
• Merger was done to expand domestic network and to fly internationally.
Year 2012
• 2008 brought with it a global financial crisis which made things at Kingfisher ever harder to deal with.
• Eventually, on October 20th 2012, the airline’s license was suspended by the DGCA.

10. What The Scam Is All About?
Kingfisher menace
Debt over load
Negligence of bank
Money Laundering

11. Debt overload
• To fuel its loss making ventures the Vijya goes for bank loan
• Vijay mallya has taken around 9000 crore loan from 17 banks.
• Even after declared bankrupt form SBI he managed to get funds.
• Following is the list of debts he has taken:

12. What The Scam Is All About?
Kingfisher menace
Debt over load
Negligence of bank
Money Laundering

13. Negligence of bank
•Banks’ official has been suspected for approving Mallya’s
loan for not worthy collaterals.
•BOI- BOI has lent 300 crore on commodities like office
stationery, boarding pass printers and chairs as collateral.
•SBI- SBI has lent 300 crore over trademarks and goodwill
which is valued at 4000 crore in 2009 but now devalued
to 6 crore.
•IOB- IOB has faced similar problem as they had lent 100
crore loan over 2 helicopter as collateral but later it found
they are not in working condition.

14. What The Scam Is All About?
Kingfisher menace
Debt over load
Negligence of bank
Money Laundering

15. Money Laundering
•The loan taken on the name of Kingfisher Airline and UB group has diverted to tax havens .
•Vijay Mallya has allegedly used shell companies in countries like USA,UK,Ireland,France.
•He also diverted some money to his IPL team Royal challengers banglore.
•Around Rs 746 crore has been spent to purchase RCB from PSB’s money.
•He also spent this money to buy F1 car race team Force India.

16. Impact of Vijya Mallya scam
Impact of scam
On
Market
On people’s
psychology

17. Impact of scam on market
The Vijay Mallya scam, which involved a significant loan default by
Kingfisher Airlines and allegations of financial misconduct by Vijay
Mallya, had several impacts on the financial markets and the Indian
economy:
•Negative Sentiment.
•Banking Sector Stress.
•Increased Regulatory Scrutiny.
•Impact on Bank Stocks.
•Credit Rating Downgrades.
•Impact on India's Image.

18. Impact on people’s psychology
The Vijay Mallya scam had several psychological impacts on people in India and
beyond, as it was a high-profile case that captured public attention for an
extended period.
•Loss of Trust in Prominent Business Figures.
•Cynicism Towards Corporations.
•Anger and Frustration.
•Distrust in the Banking Sector.
•Call for Stringent Regulation.
•Public Outrage and Activism.
•Impact on Investor Behavior.

19. March 2016
• Vijay Mallya left India on 2 March 2016 after saying he wanted to move to Britain to be closer to his children.
March 2016
• A group of 17 Indian banks were trying to collect approximately ₹90 billion (US$1.1 billion) in loans which
Mallya has allegedly routed to gain 100% or a partial stake in about 40 companies across the world.
• Several agencies including the Income Tax Department and the Central Bureau of Investigation were involved
in investigating Mallya for charges including financial fraud and money laundering.
March 2016
• The 17 banks added a joint petition at the Supreme Court of India to try to prevent Mallya from leaving the
country, but the Indian government indicated that he had already left.
• The Enforcement Directorate of India also filed a money laundering case against him for allegedly sending
abroad some ₹9 billion that had been loaned to his airline.
STORY AFTER THE REVELATION OF THE SCAM

20. April-May
2016
• On 24 April 2016, the Ministry of External Affairs of India revoked Vijay Mallya's passport, and he resigned
from the Rajya Sabha on 2 May 2016, the day before their Ethics Committee was prepared to recommend his
expulsion.
March 2016
• The High Court of Judicature at Hyderabad issued a non-bailable warrant against Mallya on 13 March 2016 for
his failure to appear in the court regarding an allegation of cheating the GMR Hyderabad International Airport
Ltd by issuing them a dishonoured cheque for ₹5 million.
June 2016
• On 13 June 2016, the Prevention of Money Laundering Act (PMLA) court declared Mallya a "proclaimed
offender" on a request by the Enforcement Directorate in connection with its money laundering probe against
him in an alleged ₹90 billion loan default case.

21. April 2017
• On 18 April 2017, Mallya was arrested by the UK Metropolitan Police extradition unit "on behalf of the Indian
authorities in relation to accusations of fraud", and was released on bail pending further consideration of the
case.
May 2017
• On 9 May 2017, the Supreme Court of India found Mallya guilty of contempt of court and summoned him to
appear on 10 July.
June 2018
• On 16 June 2018 Vijay Mallya was ordered to pay £200,000 (₹18.1 million) to Indian banks by a United Kingdom
court. He was also asked to pay money towards registration of worldwide freezing order and of Karnataka's Debt
Recovery Tribunal (DRT). Vijay Mallya was asked to pay dues to 13 banks.

22. 2019-21
• Indian authorities sought to seize and auction off Mallya's assets to recover the loans. This included the
sale of properties, shares, and other assets associated with Mallya and his companies. The ED sold assets
worth Rs 13.57 billion in 2019 and Rs 58.24 billion in 2021 to pay to the consortium of banks defrauded.
May 2020
• Vijay Mallya had filed an appeal in the UK Supreme Court earlier in month of May 2020 in the wake of
losing an appeal in the London High Court against an extradition order to India on alleged charges of fraud
and money laundering related to unrecovered loans to Kingfisher Airlines. It was said that he could be
extradited in next 28 days.
October
2018
• In October 2020 the Indian government was notified that Vijay Mallya could not be currently extradited
due to an unspecified "confidential legal matter".