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Vijay Mallya's extradition decision set for December 10

Reuters  |  LONDON 

By Michael Holden

LONDON (Reuters) - The ruling on whether Indian tycoon can be extradited from Britain to to face fraud charges will be given on Dec. 10, a said on Wednesday, after she heard closing submissions in the case.

wants to extradite 62-year-old Indian from Britain to face criminal action relating to loans taken out by his defunct and Indian authorities want to recover about $1.4 billion they say Kingfisher owes.

His lawyer, Clare Montgomery, told that the had failed to provide any substantial evidence to justify extraditing him.

The says Kingfisher took out a series of loans from Indian banks, in particular the state-owned IDBI, with the aim of palming off huge losses which Mallya knew the failing was going to sustain.

It argues Mallya, who moved to Britain in March 2016, had no intention of repaying money it borrowed from in 2009 and the loans had been taken out under false pretences, on the basis of misleading securities and with the money spent differently to how the had been told.

Mallya told media outside of court that he had met Indian to settle matters before he left the country. Jaitley denied a settlement had been reached in a post, saying he had declined to hold an audience with Mallya by telling him there was "no point talking to me".

Montgomery said the evidence she and the had provided showed Kingfisher (KFA) had been clear about what the loans were for - to secure the airline's viable future - and that it had been open about its losses.

"Full and complete and accurate information was provided and I can demonstrate that," Montgomery said, saying suggestions that there was a "secret package of knowledge" about Kingfisher's financial position which was not provided to were "utterly unfounded".

She said the Indian authorities had relied on testimony from people who were not involved at the time of the loans and they had failed to show any false statements had been made.

"The idea that this was a carefully thought out dishonest strategy promoted by him in the knowledge that KFA was bound to fail is just nonsense," Montgomery told England's Emma Arbuthnot, who will decide the case.

"This is a financial disaster for him as much as the banks."

The Indian government's Enforcement Directorate, which fights financial crimes, is seeking to declare Mallya a "fugitive economic offender" and to confiscate 125 billion rupees worth of his assets.

Mark Summers, the acting for the Indian government, said it was not their case that Mallya had taken out the loans intending that the should fail, but his intention was if it did, he would not have to repay them.

He said the optimistic message Kingfisher had given the about its future when it took out the loan was not even vaguely consistent with a much more downbeat internal assessment.

(Reporting by Michael Holden; additional reporting by and Malini Menon; editing by and Alison Williams)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 12 2018. 21:16 IST