New Delhi: India is likely to press for the extradition of business tycoon Vijay Mallya during the three-day visit of British prime minister Theresa May starting Sunday at a time Britain is eager to launch talks on a post-Brexit free trade agreement (FTA) with India.

This is May’s first bilateral visit outside the European Union since assuming office in the wake of the 23 June Brexit vote in favour of Britain leaving the EU.

“Britain is eager to start negotiations for a FTA with India. Though such an agreement cannot be signed before Brexit, there’s no harm in starting talks. But we will use this opportunity to press for the extradition of Vijay Mallya to India," a government official said, requesting anonymity.

India has already requested the British government to extradite the embattled UB group chairman, who is wanted for questioning in a money-laundering probe and is being pursued by creditors for over Rs.9,000 crore in unpaid loans.

The request was made within days of a special court issuing a non-bailable warrant for the arrest of London-based Mallya, who flew to the UK on 2 March, as investigators and creditors to his grounded Kingfisher Airlines Ltd closed in on him.

The government revoked Mallya’s diplomatic passport in March—given to him by virtue of his status as a member of the Rajya Sabha—in an effort to secure his extradition. It suspended the passport on 15 April for four weeks on the request of the Enforcement Directorate, which is probing money-laundering allegations against him.

An email sent to Mallya went unanswered. However, in an interview to the Financial Times in April, Mallya said: “By taking my passport or arresting me, they are not getting any money," Mallya told the newspaper that he has no plans to leave the UK, where he says he is in “forced exile".

Since the Brexit vote, UK has been scouting for potential trade partners if and when it formally leaves the EU—leaving may still need parliament’s nod. While some countries like Australia have refused to start FTA talks without Britain formally exiting the EU, India has responded positively to the overtures.

The ground for a future FTA has been prepared over meetings between former secretary of state for business, innovation and skills Sajid Javid and commerce minister Nirmala Sitharaman in July and during a visit in August by new International Trade Secretary Liam Fox. Both sides decided to set up a joint working group which will work out the details of “economic and commercial relationship which can be built and strengthened".

Countries are weary of starting FTA negotiations with the UK because of its current peculiar status at the World Trade Organisation. Britain is a member of the WTO, but its membership terms are currently governed by EU rules. Analysts believe negotiating tariff lines with rest of the WTO members could be complicated and long drawn.

In what could further complicate matters for May’s plan for a quick Brexit, the High Court in London on Thursday ruled that the government can’t start negotiations to leave EU without a nod from Parliament. It is not clear yet whether May’s government will appeal against the judgement in the Supreme Court.

India is also expected to raise mobility issues—allowing Indians to work and study in the UK—during May’s visit. Briefing reporters, ministry of external affairs spokesperson Vikas Swarup said that in the last five years or so, the number of Indian students enrolling in UK universities have gone down by almost 50% to about 20,000.

“This has happened because of restrictions on post-study stay in the UK. Indian students and people to people relations are important pillars of India-UK ties. We have raised our concerns on the difficulties being faced by Indian students with the UK side. We expect mobility issues to be raised during the visit," he added.

In a related development British prime minister Theresa May telephoned her Indian counterpart Narendra Modi on Thursday, an Indian government statement said.

“Both leaders agreed that there is substantial scope for further strengthening bilateral cooperation across a range of sectors, including Science and Technology, Finance, Trade and Investment, and Defence and Security," the statement said.

“The Prime Minister said that he is looking forward to welcoming Prime Minister May in India next week, which will be her first substantive bilateral visit outside Europe," it added.

Elizabeth Roche contributed to this story

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