Mallya's link with Panama Papers emerges amid his extradition case in UK

Mumbai: Vijay Mallya promoted Kingfisher Airlines had done business dealings with two Liberian based companies named in Panama Papers, according to a report in The Indian Express. According to the Wikipedia, Panama Papers are 11.5 million leaked documents that detail financial and attorney–client information for more than 2,14,488 offshore entities.

The two firms whose names have cropped up in the recent probes had held stakes in now defunct domestic carrier that was grounded for non-payment of dues Mallya owes to the banks and the Airports Authority of India, reports said. The new revelations come to the fore as an outcome of fresh investigations conducted by the Serious Fraud Investigation Office, SFIO.

It may be noted that IQ Bridge Limited, Mauritius, and its Indian subsidiary, IQ Bridge Limited, Bangalore, were controlled by Vijay Mallya and the UB Group. These two entities had held 15 lakh and 52 lakh equity shares respectively in Kingfisher Airlines before it was merged with Deccan Aviation.

In 2007-08, Mallya transferred 89 of the 99 shares he held in IQ Bridge, Mauritius, to Liberia-registered Lombard Wall Corporate Services Inc, the SFIO the IE report report says.

Investigations reveal UB Overseas Limited (UBOL) which is overseas subsidiary of United Breweries Holdings Ltd was incorporated in the British Virgin Islands (BVI). It bought 1.67 crore shares of Kingfisher Airlines on September 3, 2007, for Rs 50.02 crore. Probe also uncovers this was nine days before the airline began its open offer to acquire 20 per cent shares of Deccan Aviation, according to IE.

Mallya has been living in London since March 2 last year when he had left the country on a diplomatic passport he had held as a Rajya Sabha member. He has around Rs 9,000 crore of loans that includes interest payments to a group of 17 banks led by the State Bank of India.