Metaphorically, the noose is tightening for Mallya. The Indian government have now suspended his passport (one assumes that he hasn't managed to get another country to issue him with one), and along with the formal extradition papers being prepared for presentation to a UK court in due course, the Indian gov't has also written to the UK gov't seeking their co-operation in his extradition.
This would seem to indicate that the only GP that Mallya will be able to attend this year will be at Silverstone. Not exactly a rallying call for prospective, or existing for that matter, investors and sponsors to the team.
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