Mallya showed zero debt in Rajya Sabha affidavit

Net worth of Rs 615 crore, but owns no real estate

Vijay Mallya, chairman of the UB group, had shown zero debt to Indian banks and financial institutions in spite of Kingfisher Airline owing them, tax authorities, oil companies and even taxi operators more than Rs 10,000 crore.

In his submission to the Rajya Sabha, where he is a member, Mallya also showed his net worth at Rs 615 crore, mainly in shares and bonds.  

Mallya, who has properties across the world in the name of investment companies, did not declare a single house in his name. This will make it difficult for banks to recover their dues either in India or abroad, say lawyers.  

Mallya also owns a fleet of antique cars and expensive racing horses but declared only one Ferrari of 1989-make worth Rs 25 lakh in his affidavit. The liquor baron was elected to the Rajya Sabha in 2010 for a second term with support from the Janata Dal (United) and the Bharatiya Janata Party.

This was also the time when Mallya was raising funds from banks and pouring these into his airline, which finally shut down in 2012.

He sold United Spirits in the same year to Diageo in an opaque and complex transaction, receiving a substantial portion of the proceeds in foreign accounts. Of the United Spirits sales proceeds, not a single paisa was used by Mallya to repay loans.

Mallya’s affidavit is the only official document that shows his net worth, although there are media reports of him buying real estate in South Africa, Cayman Islands, London and California.  

Corporate lawyers say most Indian businessmen own their wealth through investment companies based in India and abroad. This is done to save on taxes and to avoid taking on personal liabilities.

Mallya had issued personal guarantees to banks while taking Rs 7,200 crore loans for Kingfisher Airline. The banks want to recover the amount but Mallya has left India and is living in his five-acre house in Tewin,  in the English countryside. His London house was also not shown in his Rajya Sabha affidavit.