Vijay Mallya’s journey from a businessman to a fraudster

As told earlier, India’s liquor baron Vijay Mallya who owes thousands of crores to several state-run banks, has fled the country. The legal battle in the Supreme Court and Debt Recovery Tribunal against Mallya is being led by SBI.


Here is the breakdown of Mallya’s journey from a businessman to a wilful defaulter.

1) Mallya owes nearly Rs 7,000 crore to bankers. Here's how it stacks up

Rs 1,600 crore - SBI

Rs 800 crore - PNB

Rs 800 crore - IDBI

Rs 650 crore - Bank of India

Rs 550 crore - Bank of Baroda

Rs 430 crore - United Bank of India

Rs 410 crore - Central Bank of India

Rs 320 crore - UCO Bank

Rs 310 crore - Corporation Bank

Rs 150 crore - State Bank of Mysore

Rs 140 crore - Indian Overseas Bank

Rs 90 crore - Federal Bank

Rs 60 crore - Punjab & Sind Bank

Rs 50 crore - Axis Bank

He, however, claims that out of these 7000 crores, Rs 1,200 crore have been recovered by these banks.

2. A look at his holdings in his companies

33% in United Breweries, which is worth Rs 7,000 crore. But more than half of the stake is pledged.

22% interest in Mangalore Chemicals & Fertilisers, which is worth Rs 140 crore. One-third of the shares are pledged. 52%of UB Holdings, a shell company, which has some real estate in Bangalore and other places, but the rentals have already been pledged.
Under 1% stake in Bayer Corp Science, but Mallya remains its chairman.

3. How Mallya became Mallya

1983 | After his father's death, Mallya becomes UB group chairman at 28.
1999 | Launches Kingfisher Strong, which changes beer consumption nationally, is still the largest selling brand.
2002 | Nominated to Rajya Sabha.

4. Mallya's shopping list

2005 | Launches Kingfisher Airlines (KFA). Buys Shaw Wallace, gaining whisky brands such as Royal Challenge
2006 | Buys Herbertsons, makers of Bagpiper whisky and Romanov vodka.
2007 | Buys F1 team Spyker, renames it Force India. Acquires Air Deccan. Buys British whisky maker Whyte and Mackay for £595m.
2008 | Buys IPL team Royal Challengers Bangalore for $111.6m. UB City comes up in Bangalore.

5. And, how it got ruined
2012 | KFA staff strike work for nonpayment of salaries, income-tax dept freezes KFA accounts, airline grounds flights. In Oct, govt suspends KFA licence. British alcoholic beverages firm Diageo agrees to buy majority stake in United Spirits
2013 | Diageo acquires 27% stake in USL for Rs 6,500 crore, but KFA lenders do not get any funds.
2014 | United Bank identifies United Breweries Holdings as wilful defaulter.
2015 | Diageo asks Mallya to step down as chairman of the Indian liquor firm but he refuses.
2016 | Banks move debt recovery tribunal, which restrains Mallya from accessing Rs 515 crore he was to receive from Diageo as settlement after agreeing to quit.

6. The pain of Kingfisher’s employees
Over 1,500 staffers, still on the firm's payrolls after it stopped operation, not paid? On March 5, employees write an open letter to Mallya, saying his 'heart is impure' and he has blood on his hands. They seek PM Narendra Modi's help to get their dues.

7. Despite whatever he says, Mallya isn’t a broke bloke

Mallya owns homes in Trump Towers, New York City, and in San Francisco. Game resort in South Africa. A beachfront villa in Goa. He also has a fleet of over 200 luxury vintage cars, a 95m "mega yacht" with a helipad, a Gulfstream private jet.

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