|© Force India
The owner and team principal of Force India, Vijay Mallya, has sunk deeper into the abyss in regards to his ailing airline with lenders now deciding to recover loans worth $1.4 billion from the business magnate.
Mallya’s airline Kingfisher has not taken flight since October last year with the company now having failed to provide a viable funding plan to the consortium of banks to which it owed money.
Sahara, which took up a 42.5 percent stake in the Formula 1 team in October 2011, is also involved in a financial battle worth $3 billion, which the Indian regulatory authority has ordered to return to its investors along with a 15 percent interest.
The Indian Supreme Court had ruled that the conglomerate had raised the money from investors illegally.
“The Securities and Exchange Board of India (SEBI) said on its website late Wednesday it had ordered the freezing of bank accounts of tycoon Subrata Roy, Sahara’s chief, and three other directors,” AFP reported.
Force India however has insisted repeatedly that it is ring-fenced against the activities of the two companies, which have a majority shareholding in the F1 team.
The team took part in the first pre-season test at Jerez with only one confirmed driver for the 2013 season and is speculated that the second seat may be available for a candidate who has adequate funding.