Force India boss Vijay Mallya arrested

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18th April 2017, 12:14
fmatiasii

Force India boss Vijay Mallya arrested

Force India team principal and co-owner Vijay Mallya has been arrested in the UK following an extradition warrant from Indian authorities.

The warrant was issued in relation to accusations of fraud surrounding his failed Kingfisher Airlines company, which is reported to owe banks over a billion dollars. Mallya had his passport revoked by the Indian government last year and has been living in the UK in what he termed "forced exile" in an interview with the Financial Times last May.

He was arrested at a central London police station on Tuesday and is due to appear at Westminster Magistrates' Court later in the day.

"Officers from the Metropolitan Police's Extradition Unit have this morning, Tuesday 18 April arrested a man on an extradition warrant," a police statement said. "Vijay Mallya, 61 (18/12/1955), was arrested on behalf of the Indian authorities in relation to accusations of fraud."

Mallya owns a 42.5 percent share in the Force India Formula One team, with a further 42.5 percent owned by Sahara Group's Subrata Roy, who was imprisoned in 2014 for failing to return deposits to Sahara Group investors under a court order.

The team is currently fourth in the constructors' standings after scoring double points finishes at all three races this season.

http://www.espn.co.uk/f1/story/_/id/...allya-arrested
18th April 2017, 12:15
Aberracus

OMG I hope it doesn't complicate this excellent team

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18th April 2017, 12:38
kshitijmalkan

Force India boss Vijay Mallya arrested

I hope not. This situation is turning stupid by the minute.

For starters, the arrest was expected. Secondly, the Indian media is really portraying him as a criminal and have been for the past few years. What ever happened to innocent until proven guilty!

Third, why is he being held personally accountable for the actions of a business. I mean for a stock market listed company aren't there other share holders etc to keep his actions in check (even SEBI).

Forth, why is the Indian government targeting him. What I mean is where are the bankers who lent KFA/UB the money, why aren't they being held accountable for sanctioning "High Risk" loans against the reputation of a brand? Why were secondary loaned sanctioned when the airline was already way in too deep!

Fifth, who else is involved in this money laundering matter? I haven't heard a single word about anyone else being arrested. Surely, with regards to the sum in question, it would not be a one man job!

India can be a cruel country. Money just isn't everything, surely bribery is rampant, but every time you see such a. High profile case in the public domain, the authority seems to set their target, fitting the evidence to suit their case.

I am not certain of the in's and out's of this particular case. But with India you can never be certain what the real deal is. One thing is for sure, if VJM is guilty, there are others who need to be bought to justice along side him. Will this happen????? Is the big question. As these individuals represent government banks, it will surely mean victory for team VJM as the banks would be just as guilty as him in sanctioning of these loans. Leaving VJM guilty of laundering (hard to prove) and tax evasion (in a country where only a small percentage pay tax).

Speaking of money Laundering, why isn't the people responsible in the IPL scams being bough forward?

I appreciate PM Modi's work. But India has long proved to be a breeding ground for corruption. And corruption exist everywhere!!!! One simple example I can give you is, back in the day when I lived in India, I had to change my educational institution. I was moving from government to private. And I was being pushed to bribe staff to get a leaving certificate. Their justification was if people like you leave, this place will have to shut down. Finally had to file several complaints across and after a nail biting 2 months I was given leave.

PS - with regards to Sahara, there maybe more troubles for Force India ahead. The Supreme Court has just ordered the sale of non mortgages property in Ambu Valley to recoup money owned to investors of the Sahara group. ForceIndia's stakes could be next in line.

Maybe this will give Alfa Romeo a good opportunity to swoop in for a new team?

Scuderia Ferrari, Alfa Romeo and Haas F1 there strong partners sounds good to me.

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18th April 2017, 12:48
WS6TransAm01

He should have ran to the Ecuadorian embassy. Could have been room mates with Julian Assange.
18th April 2017, 14:39
jgonzalesm6

Quote:

Originally Posted by WS6TransAm01

He should have ran to the Ecuadorian embassy. Could have been room mates with Julian Assange.

yup....no extradition......or pal up with Snowden too.....
18th April 2017, 16:08
ferrari4life

when was political discussions allowed on here. Thought that was severely frowned upon.
18th April 2017, 16:16
jgonzalesm6

Quote:

Originally Posted by ferrari4life

when was political discussions allowed on here. Thought that was severely frowned upon.

Vijay posted bail....until his hearing is scheduled....he is just buying his time before extradition.
18th April 2017, 17:50
nani_s23

Good thing they have arrested
18th April 2017, 21:09
kshitijmalkan

Quote:

Originally Posted by ferrari4life

when was political discussions allowed on here. Thought that was severely frowned upon.

My Bad! Dint know of that. But just saying as it possibly affects a F1 team.

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19th April 2017, 00:23
WS6TransAm01

Quote:

Originally Posted by ferrari4life

when was political discussions allowed on here. Thought that was severely frowned upon.

How is this political? Just talking about a team owner. It's not politics, it's current event related to Formula 1. Everyone is so touchy. Eeeesh
19th April 2017, 00:59
Stormy

The other part of the team is owned by Subrata Roy right? I think he is another shady character that's being under investigation as well. This is bad for Force India for sure.
19th April 2017, 01:07
jgonzalesm6

Quote:

Originally Posted by Stormy

The other part of the team is owned by Subrata Roy right? I think he is another shady character that's being under investigation as well. This is bad for Force India for sure.

He (Roy - Sahara) is in an Indian jail but got out (extension) due to his mothers illness. He is trying to sell the remaining assets of the Sahara Hotel chain to pay back what he owes.
19th April 2017, 01:24
jgonzalesm6

And yet the FI F1 team still manages to go forward and earn pts. This is a good team when you compare budgets of the rest of the field.

If this team folds cuz of its owners oweing creditors, this would be a good time for VW/VAG to buy it outright and start with whatever brand it wants to coin it. HOWEVER, this Hybrid-PU formula given VW has nothing in the works (right now) would just have to buy the engine as FI was doing until a new formula is introduced in 2020. It is cheaper to buy a team already in existence than start one from scratch....just a suggestion.
19th April 2017, 01:36
Stormy

Quote:

Originally Posted by jgonzalesm6

If this team folds cuz of its owners oweing creditors, this would be a good time for VW/VAG to buy it outright and start with whatever brand it wants to coin it. HOWEVER, this Hybrid-PU formula given VW has nothing in the works (right now) would just have to buy the engine as FI was doing until a new formula is introduced in 2020. It is cheaper to buy a team already in existence than start one from scratch....just a suggestion.

Can't see VW using other manufacturer's engine, too bad for marketing imo.
19th April 2017, 01:59
jgonzalesm6

Quote:

Originally Posted by Stormy

Can't see VW using other manufacturer's engine, too bad for marketing imo.

Even then, can you imagine IF they did come in and started from scratch (building an engine)????? and to pour the millions of dollars???? while diesel-gate is still on-going???? Naaaah......to many variables and too much $$$$$$ going out the doors (litigation and F1).
19th April 2017, 02:00
fmatiasii

I feel bad for the two drivers if the team folds, hopefully not.
19th April 2017, 06:51
kshitijmalkan

Quote:

Originally Posted by fmatiasii

I feel bad for the two drivers if the team folds, hopefully not.

From a UB and VJMs side Force India will be seen as a separate entity and things might not be as bad. My justification is that Force India was a UB subsidiary and when VJM vacated UB, he took Force India with him. He still might be a stake Holder in UB, but the case is made against him and against Kingfisher Airlines and not the UB business, which is now majorly owned by Diego Breweries.

From a Sahara side, Force India is a direct investment and may be under scrutiny from Indian authorities. If Sahara properties fold, the Force India investment, how ever affected may not matter as there will be nothing to advertise for.

Even with VJM behind bars, he may still have the personal finances to buy Force India stakes from Sahara. With the stakes much lower for them, he might get it back at a cheaper rate. At this point I would like to point out, VJM has never said he doesn't have the resources to pay back the debt, but the loans were made out to a business that folded and the debts are for the business to pay, not him personally. Anyone who runs a limited business will understand. After all that's what the limited liability stands for. VJM is just another employee of the business, even though he maybe the one running the business. Second to that is KFA/UB is a publicly listed and owned company.

VJM may have dodgy back room deals, but certainly not liable directly for debts. Laundering maybe, I don't know. As for Sahara and Subrota Roy, they are definitely hiding something.

PS - SRs mother passed away months ago and his bail had been extended to give him time to pay back the money they had taken from misguided investors. As he hasn't coughed up any where close to the amount needed, the Supreme Court is now wanting to shell off assests.

This is just my 2 cent, but I might be completely wrong.

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