Social media was in a frenzy after it emerged that Sarna, who was one of the special guests at the event on Thursday evening to mark the launch of socialite Suhel Seth's new book, was also present at the event when the business tycoon arrived.
As television news channels showed pictures of Sarna and Mallya in the hall where the event was held, questions were raised over the presence of the high commissioner at an event where a personality wanted by enforcement agencies in India was also present.
The Ministry of External Affairs (MEA) also got into the act when it issued a statement, saying Sarna left the event without waiting for the interactive session after he spotted Mallya.
"When the High Commissioner spotted Mallya in the audience he left the stage and venueimmediately after making his comments and without waiting for the interactive session," the MEA said in the statement.
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The MEA said, "there were two clear segments - the book launch byUK Minister Jo Johnsonand discussion at LSE and latera reception at the High Commission for select guests.
Seth took to Twitter to also stress that Mallya was not
an invited guest at the event, which was an event open to anyone who wanted to attend.
He tweeted:"About @TheVijayMallya at my book launch. It was an open @SAsiaLSE & advertised on Twitter. No specific invitations. Anyone could attend."
"Upon realising that @TheVijayMallya was in the audience as any other person, @NavtejSarna left before the Q&A expressing displeasure."
The event to release Seth's book 'Mantras for Success: India's Greatest CEOs Tell You How to Win' was organised by the 100 Foot Journey Club, set up as a collaboration between the Indian High Commission and LSE last month as a forum to discuss and debate issues of contemporary relevance within the India-UK sphere.
The club had beenlaunched in May with a talk at LSE on 'Rethinking the Global Monetary System' by RBI Governor Raghuram Rajan.