After the release of a SEBI order that bars Vijay Mallya from holding the position of directorship in any listed enterprise, he was asked to resign from non-executive chairmanship of United Breweries (UB) by the board of directors.
Mallya has repeatedly refused to appear before courts and investigators in India since he secretly fled to Britain last March, after defaulting on loan payments to state-owned banks and allegedly misusing the funds.
The government has passed on the extradition request received recently from the Central Bureau of Investigation to the UK High commission, external affairs ministry spokesperson Vikas Swarup announced.
"We are compelled to request you to step down from the Board of United Breweries Ltd with immediate effect", said Company Secretary and Vice President-Legal Govind Iyengar in an email to Mallya on late Wednesday night. According to one of the articles of the UK-India treaty, the person to be extradited can put up his defense claiming that he is being falsely charged as the real intention is to harass him.
In January, an Indian court ordered a consortium of banks to start the process of recovering roughly $1 billion in loans from Mallya, who refuses to return home from exile.
The government first suspended the liquor baron's passport and then revoked it in April 2016, as it had found his reply to a notice served by the MEA unsatisfactory. But the foreign ministry was told that India's deportation request was not covered under United Kingdom laws that allowed visitors to stay back even if their passport wasn't valid any longer.
The CBI charge sheet against Mallya set the grounds for India to seek his extradition.