While his Force India F1 team is preparing for the Japanese Grand Prix, out in Suzuka, Vijay Mallya is in more trouble in the UK. He will soon face extradition proceedings at London’s Westminster Magistrates Court, which has been asked to send him home by the Indian authorities to face charges of fraudulently obtaining and misusing funds relating to the now-defunct Kingfisher Airlines. Today in London he was arrested again, this time on charges of money-laundering, with the F1 team being mentioned as the destination for some of the missing money. Mallya was later released on bail.
The initial charges were following an investigation by the Central Bureau of Investigation (CBI) in India, while the new charges come from a separate investigation by the Enforcement Directorate (ED). Mallya continues to deny all the allegations. His extradition hearing is due to begin on December 4, but there is no doubt that he will continue to try to avoid being sent back to India by appealing as many different grounds as he can possibly find, if the court rules that he must be returned to his homeland. He is stuck in the UK at the moment after India cancelled his passport.
At the same time, Subrata Roy, Mallya’s partner in Force India, is still up to his neck in trouble with the Supreme Court having run out of patience with his ducking and weaving. It has ordered that his Aamby Valley development be sold at auction next week. The authorities say that Roy illegally raised $3.1 billion in 2011 and ordered him to deposit the money with the regulator. He failed to do so and so was sent to jail in May 2014. Since then the authorities have sold off parts on his empire to raise the money owed. The Aamby Valley project is the largest part of his crumbling empire and its sale could raise $1.5 billion, but there are currently only two bidders and the price may not be that high. Roy is currently on parole.
The word in Formula 1 circles is that Force India is for sale, but the two Indians seem to have rather high expectations of its value and so no deal has yet happened. The fear is that if they do not sell quickly, the team could become tied up in the various legal messes – which could be disastrous.
joeblogsf1 
Wow, $3.1 billion. These boys should have a film made about them, starring maybe Budd Abbot and Lou Costello. Mallya will happily sell the former Hamilton council house to put up the finance.
The CGI would be expensive…
I think it’ll be tragedy if anything happens to that team, it’s remarkably well run, and as always punched above it’s weight, despite the owners.
Any chance senior team members could raise enough to buy the team, they seam a very capable bunch or find a partner to collaborate with them?
If I had a spare half a billion, I’d buy the team.
I guess the issue is that any sale proceeds will probably go straight to a creditor somewhere do why sell at any price,
I hope reality strikes when Mallya and Roy realise that it might be better to sell the team for a realistic amount than let it disintegrate. I am not optimistic, given the business practices of this pair of Walter Mittys in the past. The team personnel, who are doing a sterling job, deserve better.
Joe does this mean there’s a possibility we will be down 9 teams next season? I have to say I hope not. The last thing F1 needs is less teams . 10 is an absolute minimum for me.
I doubt there will be fewer teams
FI should have steady prize money for the next few years that will be enough to at least show up, just like Sauber have been doing. Survival for the next few years shouldn’t be a problem, question is whether they can raise the money to develop their car to the level of McLaren, Red Bull, and Renault or whether they drop back to the level of Williams and TR.
14 is an absolute minimum for me, fighting for 26 places on the grid, but hey ho.
+1
What a mess. The bizarre thing is they continue to perform so strongly on track despite all the chaos and mayhem with the owners. Hopefully the team isn’t negatively impacted by it all but it’s hard to imagine it won’t all end up in a heap at some point.
I keep thinking somebody is going to get a bargain if there is a forced sale but as you point out the money that has flowed into the team will most likely be part of the legal proceedings and almost definitely cause problems for the team as a whole.
One man’s ‘ring-fencing’ is another man’s money laundering.
Ole Viij frequently highlighted the first term.
Sad situation for the hard working and loyal team members tho’.
Ring fencing isn’t illegal
Ring-fencing is a way of improving the control and traceability of funds… money laundering is the absolute opposite.
Yes 🙂
It is if the assets you’re ring fencing for the benefit of company A are technically the property of company B. Even if both are subsidiaries of the same Group, especially if both are incorporated with liability liability.
Just hypothetically, of course.
The question will be how much of the operating budget has come from the alleged laundered means….
This is a cracking little team and i suspect potential suitors will soon be queuing up to buy it.
But would the legal process stop F One from actually running until resolved?
I assume any buyer of Force India would want indemnities against any legal issues. Not sure any indemnity from these 2 fellows will be good enough. Therefore is Force India now almost impossible to sell on ?
Indian version of Arthur Daley though as the song goes in Cockney speak “little dodgy maybe but he’s alright” , wouldn’t apply to Vijay who seems to say he has no money then spend a half million on a lavish party in London celebrating his birthday (last year). Assume he’ll be doing the same again and again.
Whatever the Indian Government do, he’d have hidden his money so deep that even a Prostate Doctor giving him a 5 finger examination couldn’t tickle it out of him.
Force India have to distance themselves from him and his armchair tweeting.
Soon he will be behind bars…hopefully.
Any signs the Brabham Racing Organization is interested? Just asking……
No
Interesting that a withdrawn passport is not an almost automatic cause for repatriation, perhaps one of the “Monarch” flights on an outward trip could find space for him and his furniture.
Many years ago when I was “gainfully” employed in the motor industry it always used to amuse and amaze how little equity there was in most of our agents. I believe much the same applies to many of these charlatans.
As others I very much hope Force India keep moving forward. Carlos Slim ?
I am surprised that VJ does not have dual nationality with somewhere like Ecuador or Venezuala.
I’d watch Barbados…
Isn’t that where one of the FIFA West Indian chap is stuck with his dosh?
Unable to move as the FBI are trying to get him extradited. Think he was also in charge of ticket Sales for the Test Cricket tours by England Australia New Zealand and S.Africa & India .
Barbados has no extradition treaty with the USA… I assume it’s the same with India.
Sounds like you know more than that little quip implies. You really use our language wonderfully.
Mosquitoes are banned & eliminated !
I am slightly surprised that Vijay did not base himself in Monaco where if you keep your nose clean and pay your agreed taxes the authorities leave you alone – and I doubt if there is an extratition agreement with india! It might be boring compared to swinging London but you are not going to have to worry about having your collar felt by PC Plod.
Maybe he skipped out without paying his docking fees at Monaco.
India does not allow dual nationality. If any Indian takes up citizenship of another country he/she is expected to give up their Indian passport/citizenship
Come back Eddie Jordan…….
Venezuela would strip him quickly, I’m thinking.
It seems that any independent teams that punches above its weight is just waiting for a fall – the most recent incarnation of Lotus springing to mind straight away – there’s obviously little F1 can do about corrupt team owners or share holders, but I can’t help thinking that if F1’s finances weren’t just as rigged teams could stand on their own two feet financially.
It’s hard enough for indi’s to take the fight to the bigger, more well funded teams as it is, but where is the motivation for David to slay Goliath when the only reward is a kick in the teeth?
+1. Genii screwed up on finance, and they deserve the blame for that. But they don’t get enough credit for having put a lot of cash in up front in the hope of a big win. When I heard Renault had sold out to a finance house, I thought it was game over. Didn’t expect two more victories and a shedload of podiums. And -part- of what tripped Genii up is that beating big name teams on track still didn’t earn them as much prize money as those big teams got just for showing up.
Half the people who (rightly) criticise Genii for cutting their losses and not paying the bills are the same people who bleat about teams hiring pay drivers…