An arrest warrant for Indian business magnate and Formula 1’s Force India team Principal Vijay Mallya over suspected bounced cheques written by his troubled airline has been withdrawn following the carrier agreed to pay the sums due, reports said Wednesday.
The media reported that GMR Hyderabad International Airport Ltd (GHIAL) as saying it withdrew its case alongside Mallya after his Kingfisher Airlines agreed to pay around $2 million owing in service charges.
“The case (against Kingfisher and Mallya) has been withdrawn,” The Press Trust of India quoted J.B. Chenna Keshava Rao, one of GMR’s lawyers, as saying.
“The matter has been settled by our client (GMR with Kingfisher)… They asked us to withdraw the case after which we informed the court about withdrawal of the case which has been agreed upon,” Rao said.
The court had also issued warrants last week against several senior airline executives in what was seen as dramatic escalation of the crisis facing Mallya’s cash-strapped carrier.
The warrants were issued after GHIAL filed a complaint over alleged bounced cheques totaling 105 million rupees ($2 million) for landing and other user fees at the Hyderabad airport in southern India.
The Economic Times newspaper on its website quoted another GMR lawyer as saying “the warrants issued against Vijay Mallya and other senior KFA (Kingfisher Airlines) officials were withdrawn”.
Mallya inherited his father’s beer business and built it into an empire spanning fertilisers, top European alcohol brands, Formula One team Force India and a cricket club, Royal Challengers Bangalore.