From Boardroom to Courtroom: Vijay Mallya’s Legal Tangle

Author: Sanika Bhoite, PES Modern Law College, Pune


To the point
In 2025, social media was shocked by

one podcast. This podcast was not about any influencer, social worker, or celebrity. It was all about a person who is accused in a bank loan default case of over 9,000 crore involving his now-defunct Kingfisher Airlines.

Yes, today’s article is all about Vijay Mallya, the top businessman who started the brand Kingfisher Airlines and was also the Chairman of United Breweries Group. In his recent podcast published on social media, he said, “Call me a fugitive for not going to India post-March 2016. I didn’t run away; I flew out of India on a pre-scheduled visit.” In June 2025, his appearance on social media in Raj Shamani’s podcast became the subject of serious social and economic debate.

Emergence of Vijay Mallya


After the death of his father due to a massive heart attack, Vijay Mallya took over the business and launched food chains like McDowell’s and Pizza King.”


His competitor at that time was the legendary Dabbawalas. But people preferred homemade food, so this idea completely failed and ended in 1987. He also launched a drink named “THRILL” after Coca-Cola exited India, but unfortunately, it was discontinued. Still, he kept trying to diversify his company into many sectors like transportation, chemicals, software, telecom, and hospitality.

The Emergence of the World’s Biggest Brand – Kingfisher

the Kingfisher beer brand became one of India’s biggest brands contributing to India’s economy. The brand competed with traditional brands like Golden Eagle. At that time, Vijay noticed that no beer brand targeted the youth. So, he rebranded the logo and color. The new logo was a combination of the energy of youngsters, their symbol of freedom, and freshness. Kingfisher started targeting the youth, and this was a good decision that made him a successful businessman. By 2004, United Breweries became the 4th largest liquor company in the world.

Political History
He was the member of the Rajya Sabha. On 2nd May 2016, Mallya resigned from his post as a Rajya Sabha MP, a week after the Rajya Sabha ethics panel declared that he should no longer be a member of the House.

Kingfisher Airlines and the Downfall of Vijay Mallya

He was the owner of a liquor business, but for common people, he started a new air service named Kingfisher Airlines. This was evolved by his idea to offer premium service to common people. The airline offered dedicated entertainment systems, highly trained air hostesses, and luxurious services which became the main reason to attract people. His dream was to make his airline an international airline, not just a domestic one. That’s why he decided to buy the low-cost airline Air Deccan and got the license to fly internationally. He also renamed Deccan as Kingfisher.

In 2008, Kingfisher Airlines became India’s biggest airline with a 27% market share. Kingfisher didn’t believe in low-cost services. At that time, Indian customers started ignoring high-priced tickets and turned to low-cost airlines which were new in the competition like IndiGo and SpiceJet. The global economic crisis in 2008, rising aviation fuel prices, and declining customers due to high ticket prices led Kingfisher Airlines into a downfall.

In 2012, Kingfisher Airlines returned 32 planes due to heavy losses. There were pending dues of ₹1,000 crore to oil companies. There were also no payments made to pilots and staff, which became the reason for public hatred. In 2012, due to lack of funds, Kingfisher grounded their aircraft and finally in October 2012, the airline was completely shut down.

Vijay mallya By using his position, IDBI sanctioned ₹950 crore and accepted Kingfisher’s assets as collateral. When the airline failed to repay the loan, banks started giving more loans to pay previous ones. They provided fresh loans at lower interest rates and gave an extended repayment period of 9 years. Vijay Mallya gave his personal guarantee, meaning that if the loan was not repaid, legal action could be taken against him.

In 2015, the Supreme Court declared him a wilful defaulter and a CBI investigation was launched against him. In 2015, multiple cases and investigations were initiated. But shockingly, on his 60th birthday, Mallya spent ₹13 crore on his party, known as “the mother of all bashes.” The CBI filed a petition in court to prevent Mallya from leaving the country. Unfortunately, before any restriction order could take effect, Mallya boarded a private jet to London, leaving behind unpaid loans of ₹9,991 crore.

Mallya repeatedly challenged and stalled the extradition process in UK courts.

Use of Legal Jargon

He was later labelled a fugitive economic offender under the Fugitive Economic Offenders Act, 2018, because he left India to escape legal proceedings concerning financial crimes above ₹100 crore. A Lookout Circular (LOC) was issued but failed to restrict his departure. The Indian government invoked its rights under extradition treaties and mutual legal assistance treaties (MLAT) to bring him back to face justice. He had also given a personal guarantee, a binding legal commitment, making him personally liable for the loans.

The Proof

The paper trail clearly shows that loans were sanctioned to Mallya’s company despite poor financial standing. Kingfisher Airlines failed to repay dues, leading to additional loans being approved to recover old ones. He left the country despite a LOC in place and used delays and appeals to evade legal action. CBI, ED, and multiple courts have produced charge sheets, statements, and findings proving loan default, money laundering, and deliberate evasion.

Abstract

This article covers the rise and fall of Vijay Mallya—a man once hailed as one of India’s most successful businessmen. It details his journey from launching Kingfisher Airlines to becoming a fugitive. His case became one of the most high-profile examples of financial fraud and corporate failure. It highlights how his poor business decisions, excessive lifestyle, and disregard for legal accountability led to his downfall and how Indian legal institutions are still fighting to bring him back.

Case Laws

In the matter of State Bank of India v. Vijay Mallya, the Debt Recovery Tribunal held Mallya responsible for Kingfisher’s unpaid loans. In Union of India v. Vijay Mallya, the UK courts initially allowed extradition. In CBI v. Vijay Mallya, the Supreme Court declared him a wilful defaulter. In enforcement proceedings under the PMLA, 2002, his assets were attached. These cases together form the backbone of the legal battle against him.

Conclusion

Vijay Mallya’s case proves how political power, corporate influence, and poor regulation can lead to large-scale economic fraud. It is a wake-up call for India’s banking and legal systems to be more vigilant and effective. His story, from boardroom brilliance to courtroom battles, reflects a dramatic fall from grace. As India continues to push for his extradition, the case sends a clear message: the law may be delayed, but it will eventually catch up—even with the most powerful.

FAQS

Who is Vijay Mallya?
He is a former businessman and politician accused of defaulting on loans of over ₹9,000 crore and facing charges of financial fraud.

Is he a fugitive?
Yes. Under Indian law, he has been declared a Fugitive Economic Offender.

Why did Kingfisher Airlines fail?
Due to a flawed luxury model, high costs, global recession, fuel prices, and mismanagement.

What is the status of his extradition?
It is still pending in the UK courts due to legal appeals filed by Mallya.

What laws are involved in his case?
Fugitive Economic Offenders Act, Prevention of Money Laundering Act (PMLA), SARFAESI Act, and Indian Penal Code sections relating to fraud and breach of trust.

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