Vijay Mallya | Business Upturn

SEBI bars Vijay Mallya from securities market for 3 years, orders to freeze all existing holdings

Markets Desk — Fri, 26 Jul 2024 13:13:33 +0000

The Securities and Exchange Board of India (SEBI) has barred businessman Vijay Mallya from accessing the securities market for three years, in a fresh blow to the embattled liquor baron. The market regulator SEBI found Mallya guilty of routing funds through overseas accounts to trade in shares of his own companies, violating multiple securities laws.

In a 37-page order, SEBI detailed how Mallya used a complex web of overseas entities to funnel money into a Foreign Institutional Investor (FII) sub-account, Matterhorn Ventures. This account was then used to purchase shares of Herbertsons Ltd and United Spirits Ltd (USL), both companies controlled by Mallya, during 2006-2008.

“The Noticee [Mallya] has glaringly resorted to making investments through the FII route by masking his identity under the garb of an FII,” the SEBI order stated. This scheme allowed Mallya to conceal his identity while trading in his own companies’ shares, abusing the FII route meant for foreign investors.

SEBI’s investigation was triggered by information from the UK’s Financial Conduct Authority. The regulator found that Mallya had misrepresented Matterhorn’s 9.98% stake in Herbertsons as non-promoter holding when it was actually funded by him.

As a result of these violations, SEBI has:

Barred Mallya from accessing the securities market for 3 years
Prohibited him from associating with any listed company for 3 years
Frozen his existing securities holdings

This action follows a previous SEBI order in 2018 that had barred Mallya for 3 years and restrained him from holding director or key managerial positions for 5 years.

Despite being given multiple opportunities to respond, Mallya did not substantively contest the allegations. The order comes into immediate effect.

This latest setback adds to Mallya’s ongoing legal troubles, including extradition proceedings in the UK related to alleged bank fraud and money laundering in India.

England’s judiciary will not be used for evading law of India: Boris Johnson on Vijay Mallya

Aryan Jakhar — Fri, 22 Apr 2022 12:37:50 +0000

When asked about Nirav Modi, Vijay Mallya, and other Khalistani fanatics, British Prime Minister Boris Johnson indicated on Friday that extradition cases were stalled owing to legal technicalities.

“We’ve set up an anti-extremist task force to help India…UK govt ordered extradition…We don’t welcome people who want to use our legal system to evade the law in India,” The British PM mentioned.

#WATCH| On being asked about Nirav Modi, Vijay Mallya &Khalistani extremists,British PM Boris Johnson said,"We've set up an anti-extremist task force to help India…UK govt ordered extradition…We don’t welcome people who want to use our legal system to evade the law in India." pic.twitter.com/rK3nV9xRG2

— ANI (@ANI) April 22, 2022

“We don’t allow extremist organisations forming in the UK and endangering other nations, including India,” British Prime Minister David Cameron said, adding that the UK government has established an anti-extremist task force to assist India.

“The UK government has requested their extradition,” British Prime Minister Boris Johnson said when questioned about fugitives Nirav Modi and Vijay Mallya, who have found asylum in the UK.

The British Prime Minister further stated that these individuals should be returned to India for trial. He also made it plain that anyone who uses the British judicial system to avoid facing charges in India would be rejected.

Vijay Mallya, an Indian businessman, is now battling extradition from the United Kingdom. Mallya is accused of fraud and money laundering in India, where he owes an estimated 9,000 crore to 17 Indian banks.

Meanwhile, Nirav Modi is a wanted Indian businessman who dealt in high-end diamond jewellery. He is the creator of the Nirav Modi diamond jewellery retail network. In the $2 billion Punjab National Bank (PNB) fraud case, Modi is being investigated. In August 2018, the Indian government charged him in the PNB scam case with criminal conspiracy, criminal breach of trust, cheating, corruption, money laundering, fraud, embezzlement, and breach of contract.

Johnson addressed measures to strengthen security ties with India with his Indian counterpart Narendra Modi during his maiden visit to the Indian capital as UK Prime Minister. India buys more than half of its military gear from Russia.

According to Johnson, the UK is also developing an open general export licence for India in order to reduce delivery times for defence equipment. At the moment, only the European Union and the United States have such permits.

₹18,000 crore recovered from Vijay Mallya, Nirav Modi & Choksi: Centre to SC

Sathvika Chelakani — Wed, 23 Feb 2022 13:57:30 +0000

Solicitor General Tushar Mehta informed the Supreme Court on Wednesday that Rs 18,000 crore had been returned to the banks in the Vijay Mallya, Nirav Modi, and Mehul Choksi cases.

Mehta, speaking on behalf of the Centre, told a bench led by Justice A.M. Khanwilkar that the total proceeds of crime in the Prevention of Money Laundering Act (PMLA) cases pending before the Supreme Court amount to Rs 67,000 crore.
He went on to say that the Directorate of Enforcement is currently investigating 4,700 cases and that the number of cases taken up for investigation each year over the last five years has ranged from 111 in 2015-16 to 981 in 2020-21.

Mallya is wanted in India on fraud and money laundering charges and is being held on bail in the UK while a “confidential” legal process is completed.
After the UK government ordered his extradition to India in February 2019, Mallya exhausted all legal avenues to challenge the order in British courts. The businessman is now wanted to believe to be relying on an application for political asylum in the United Kingdom.
While Mallya owes a consortium of banks over 9,000 crore in principal and interest, diamantaires Nirav Modi and Choksi, the main suspect in the Punjab National Bank (PNB) loan fraud case, had also caused the bank losses totalling 13,000 crore.

The Supreme Court is currently hearing a slew of petitions challenging the broad range of powers granted to the Directorate of Enforcement (ED) under the law for quest, seizure, investigation, and attachment of criminal proceeds.

Mehta told the bench, which included Justices Dinesh Maheshwari and C.T. Ravikumar, that over the last five years (2016-17 to 2020-21), only 2,086 cases were filled up for investigation under the PMLA, despite the police and other enforcement agencies filing approximately 33 lakh FIRs for predicate offences.

He went on to say that “a very handful of cases are being taken up for investigation under the PMLA in comparison to annual registration of cases under the Money Laundering Act in the UK (7,900), the US (1,532), China (4,691 cases), Austria (1,036), Hongkong (1,823), Belgium (1,862) and Russia (2,764).”

Kingfisher House of Vijay Mallya sold for Rs 52 crore

Vandana Nampoothiri — Sat, 14 Aug 2021 06:51:12 +0000

Kingfisher House, headquarters of now inoperative Kingfisher Airlines Ltd in Mumbai was sold off by lenders to Hyderbad based Saturn Realtors for Rs. 52 crore.

According to The Indian Express, Saturn Realtors brought the house for one-third of its reserve price of Rs 135 crore. Located in the outskirts of Mumbai Airport, the house was originally priced at Rs.150 crore. Due to this unrealistic pricing, the property failed to attract buyers even after several times keeping the house for auction. The house was sold off by the debt recovery tribunal (DRT).

As reported by The Indian Express, the money received from the auction will go to the lenders who have already recovered Rs 7,250 crore through the auction of shares of fugitive businessman Vijay Mallya, former promoter of Kingfisher Airlines.

Vijay Mallya was declared fugitive in India in 2019. His company, Kingfisher Airlines owes Rs.10,000 crores to a consortium of banks led by the State Bank of India (SBI). In July, a British court granted a bankruptcy order against Mallya, following which the consortium of banks started pursuing a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines, MoneyControl reported.

The auction sale for the Kingfisher house began in 2016 at Rs. 150 crores.

London High Court declares Vijay Mallya bankrupt

Bhaswati Sengupta — Mon, 26 Jul 2021 16:24:38 +0000

According to News 18 report, the London High Court has declared Vijay Mallya as bankrupt on July 26.

In the month of May, the UK Court reviewed an application by a lender consortium led by the SBI to revise their bankruptcy petition in favors of waving their securities over Vijay Mallya’s asset in India.

Reportedly, Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs had put forward his judgement in favor of the bank stating that there is no public policy which prevents a wavier of security rights , as claimed by Mallya’s lawyers.

The Court’s verdict will help the consortium of Indian Banks headed by the State Bank of India to reclaim its debts from loans provided to the Vijay Mallya’s now-defunct Kingfisher Airline by seizing his assets in India.

According to reports, the businessman had tried to appeal against the High Court verdict. However, he was denied to do so.

Vijay Mallya had fled from India hours before the bank could approach the Supreme Court seeking his detention. Since then, the country is in a continuous effort for his extradition.

(This is a developing story. Check back for further updates)

ED tranfers banks ₹9,371.17 Cr assets seized from Vijay Mallya, Nirav Modi and Mehul Choksi

Aryan Jakhar — Wed, 23 Jun 2021 11:11:42 +0000

The Enforcement Directorate (ED) on Tuesday transferred assets worth ₹8,441 crore to banks who had suffered huge losses due to frauds done by Vijay Mallya, Nirav Modi and Mehul Choksi. The three fugitives cheated the public sector banks of ₹22,586 crore, out of which 80.45% (₹18,170 crore) has been seized by the ED, the agency said by tweeting on twitter.

With the latest transfer, assets worth ₹9,371 crore have been handed over to the banks so far, which amounts to 40% of their losses, ED said. These include assets worth ₹329.67 crore that were confiscated, the agency further added.

ED not only attached/ seized assets worth of Rs. 18,170.02 crore (80.45% of total loss to banks) in case of Vijay Mallya, Nirav Modi and Mehul Choksi under the PMLA but also transferred a part of attached/ seized assets of Rs. 9371.17 Crore to the PSBs and
Central Government.

— ED (@dir_ed) June 23, 2021

The investigation done by ED, revealed that the three accused used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks, it said.

The agency also added “extradition requests have been sent to countries where the three accused are living. While Mallya and Modi live in London (United Kingdom), Mehul Choksi chose Antigua and Barbuda after running away from India.’

Mallya has been denied permission to file any appeal in the UK Supreme Court, which has made his extradition to India almost final. While Modi’s extradition to India has also been cleared that Mehul Choksi is fighting a legal battle in Antigua

Vijay Mallya and Nirav Modi have been declared fugitive economic offenders by PMLA court in India.

Nirav Modi was arrested on March 19, 2019 in London (the UK) and after he was arrested he was produced in Westminster Court, and was lodged at London’s Wandsworth Prison. From the prison, he appeared on the hearings via video link as the case went on for years. Once the case gets over in London, Nirav Modi will be kept at Mumbai’s Arthur Road Jail, which kept a special cell ready for him at barrack 12. If he get lodged in this barrack, earlier prepared for Vijay Mallya, Nirav Modi is likely to get his personal space of three square meters, where a cotton mat, pillow, bedsheet and blanket will be provided, sources said.

PMLA Court allows banks to sell Vijay Mallya’s properties to recover debts

Aryan Jakhar — Sat, 05 Jun 2021 10:58:30 +0000

Vijay Mallya is accused in a bank loan default case of over ₹9,000 crore involving his defunct Kingfisher Airlines and is presently in the United Kingdom. A Prevention of Money Laundering Act (PMLA) court has allowed banks to sell certain real estate assets and securities and of fugitive business tycoon Vijay Mallya to recover their debts.

“The PMLA court has given permission to banks to sell certain real estate properties and securities that belonged to disgraced tycoon Vijay Mallya to recover dues loan amount of over ₹5,600 crore. It was earlier under the Enforcement Directorate,” said Mallikarjuna Rao, Managing Director, Punjab National Bank.

“Now the lead bank will sell those properties. PNB does not have much loan exposure in Kingfisher, but we will get our due share whatever once lead bank to realize,” added Rao.

Mallya is accused in a bank loan default case of over ₹9,000 crore involving his defunct Kingfisher Airlines and is presently in the United Kingdom. Mallya was declared as a fugitive economic offender in January 2019 by a special court in Mumbai.

The 65-year-old has gone through and exhausted the full legal procedures available to him to fight the government’s effort to extradite him to India to face charges of defrauding a consortium of banks of more than a billion dollars in relation to the collapse of Kingfisher Airlines in 2013.

Vijay Mallya extradition process may drag on for years

Sarthak Yadav — Mon, 21 Dec 2020 10:00:27 +0000

New Delhi cannot get fugitive business tycoon Vijay Mallya extradited any time soon as per Times Now because apparently, he has applied for asylum and the proceedings which may lead the extradition process to drag on for years together.

As per recent direction from India’s Supreme Court which had questioned the delay in Mallya’s extradition despite him exhausting all legal options by May this year, India’s Home Secretary had written to the Foreign Secretary who met Indian High Commissioner in the UK and discussed the matter but he was not made known the details and exact “legal proceeding of confidential nature” going on in the UK pertaining to Mallya, Times Now reported.

The word is that Mallya is actively pursuing asylum proceedings and he has strong political patronage in the United Kingdom.

Asylum is a completely discretionary proceeding of the political dispensation and has nothing to do with the courts.

A bench headed by Justice Uday Lalit of the Supreme Court is waiting for Mallya’s extradition for pronouncing his sentence after convicting him for contempt. As per a judgment on July 14, 2017, Mallya was found guilty of contempt for not paying Rs 9,000 crore worth of dues to the banks despite repeated directions.

Mallya was also accused of not disclosing his assets and also secretly trying to dispose of the assets to defeat the recovery proceeding. Supreme Court had also dismissed Mallya’s review plea on August 30 this year finding no merit in it.

List of billionaires who have declared bankruptcy

Divyaleen Manchanda — Thu, 05 Nov 2020 14:49:20 +0000

Billionaires live a life earned by them along with their success but some of them saw their success turn into failure. Their journey from riches to rags became as famous as their journey from rags to riches. Many billionaires lived the best time of their lives but they failed. They created wealth but have now declared bankruptcy.

Here is a list of some billionaires who have declared bankruptcy.

1. Pramod Mittal

In 2013, Pramod Mittal threw a big fat wedding for his daughter which cost him Rs 505 crores. In 2020, he was declared the “most bankrupt man” by the London High Court. He owes £2.5 billion to a lot of people including his family. Recently, the Times of India reported that “Pramod Mittal’s creditors have agreed to his proposal of IVA (individual voluntary arrangement), in which he will now have to pay only $4.4 million (nearly ₹42 crores) of the total amount he owes them.”

2. Nirav Modi

Nirav Modi and his uncle were accused of scamming the Punjab National Bank of nearly Rs 13,000 crores. In 2018, three companies of Nirav Modi filed for bankruptcy. In 2020, many personal possessions of Nirav Modi were auctioned which included his Rolls Royce and a unique painting by MF Hussain.

3. Anil Ambani

Anil Ambani is the brother of India’s richest man and he is about to declare bankruptcy. Last year, Reliance Communications had filed for bankruptcy. According to the Indian Express, he has failed to repay the loans he took from three Chinese banks (₹6,882 crores) and a loan of ₹1,200 crores from the State Bank of India. Anil Ambani said, “My net worth is zero after taking into account my liabilities. In summary, I do not hold any meaningful assets which can be liquidated for the purposes of these proceedings.”

4. Vijay Mallya

Vijay Mallya owes many banks an amount of Rs 9000 crores. He had taken this loan to save his Kingfisher flights from failing. Kingfisher is not functional anymore. As reported by Bloomberg, “As many as 12 Indian banks filed a petition for Vijay Mallya to be declared bankrupt.” The Economic Times reported, “Recently the London High Court gave him a bankruptcy reprieve stating that he should be given time to first settle his petitions in the Indian courts.”

5. BR Shetty

There was a time when BR Shetty owned vintage cars, private jet and two floors of Burj Khalifa. But now, the tables have turned. BR Shetty was the founder of NMC Health and he was accused of fraudulent financial practices. His company, NMC Health, has declared bankruptcy. NMC Health had an undisclosed debt of $6.6 billion.

Centre unknown to the “SECRET” Proceedings delaying Vijay Mallya’s extradition from London

Anu Jain — Mon, 05 Oct 2020 10:29:30 +0000

On Monday, Ministry of External Affairs told Supreme court that extradition of fugitive businessman Vijay Mallya was ordered by United Kingdom’s SC but has not yet come into effect.

“Vijay Mallya’s extradition to India has been delayed as the erstwhile liquor baron has launched secret proceedings in the UK courts,” said MEA and that “it was unknown to any such event.”

The UK Supreme Court had upheld Mallya’s extradition request.

Advocate Rajat Nair, representing the Centre told a bench headed by Justice UU Lalit. “After extradition proceedings were complete, another secret proceeding commenced but we were not notified and we are also not a party to the proceedings. The extradition which was upheld by the highest court of the UK is not happening (due to the new proceedings),”

The Supreme Court has blasted on Mallya’s counsels and asked them to provide “clarity on nature” of current proceedings in the UK in the next hearing. The next hearing is scheduled for November 2, 2020.

Vijay Mallya fled to London in 2016 and is facing extradition to India since then.

SC directs Vijay Mallya to appear before it on October 5, dismisses his review plea

Muskan Jain — Mon, 31 Aug 2020 19:09:59 +0000

The Supreme Court while on Monday dismissing fugitive businessman Vijay Mallya’s review plea against July 14, 2017 judgment wherein he was found guilty of contempt for not paying Rs 9000 Cr worth of dues to the banks despite repeated directions, has significantly also summoned him, asking him to be present before it on October 5 at 02:00 pm.

This is for beginning the hearing on his sentencing. SC awaits his production after extradition to pronounce sentence. Ministry of Home Affairs has also been asked to “facilitate and ensure” his presence in the apex court.

“Now that the Review Petitions are dismissed, we direct respondent No.3 (Mallya) to appear before this Court on 05.10.2020 at 02:00 p.m. and also direct the Ministry of Home Affairs, Government of India, New Delhi to facilitate and ensure the presence of respondent No 3 before this Court on that day. A copy of this judgement be sent to the Ministry of Home Affairs for facility and compliance,” said the bench headed by Justice UU Lalit.

On July 14, 2017, the court indefinitely deferred the sentencing after holding him guilty in the contempt case filed by a consortium of banks related to the Rs 9000 crore loan default case for not paying the amount despite repeated directions. Mallya was also accused of not disclosing his assets and also secretly trying to dispose of the assets to defeat the recovery proceedings.

SC had said the sentencing could be done only after the government extradites him and produce him before the judges. Mallya is expected to be extradited to India after he lost his plea in the UK Supreme Court to appeal against a 2018 extradition order.

Only some legal formalities remain before he is brought to India. UK High Court had earlier dismissed his appeal against a Westminster Magistrates’ Court’s extradition order which got a stamp of approval from UK Home Secretary.

After Mallya lost his plea in the SC, Mallya had urged the government to unconditionally accept his offer of bank loan repayment and close the case against him. Remember, the Supreme Court is waiting for his extradition for pronouncing his sentence after convicting him for contempt.

Supreme Court dismisses Vijay Mallya’s plea to review the May 2017 order holding him guilty of contempt

Nivedya P T — Mon, 31 Aug 2020 06:38:40 +0000

The Supreme Court in its verdict on a review plea filed by fugitive businessman Vijay Mallya in a 2017 contempt case has dismissed the plea on Monday. The verdict delivered by a bench comprising justices U U Lalit and Ashok Bhushan came after hearing the arguments in the case last week.

Supreme Court dismisses a plea filed by fugitive businessman Vijay Mallya, seeking a review of its May 2017 order holding him guilty of contempt for transferring USD 40 million to his children, in violation of the court's order pic.twitter.com/JxmEhu1CCq

— ANI (@ANI) August 31, 2020

In 2017 Vijay Mally was held guilty of contempt for transferring USD 40 million received from British firm Diageo to his children in flagrant violation of various judicial orders, after a plea by a consortium of banks led by the State Bank of India was filed in the court.

The bank accused Mallya of concealing the facts and diverting the money to his son Siddharth and daughters Leanna and Tanya and thus violating the orders passed by the Karnataka High Court, which had previously ordered him not to transfer or alienate any movable and immovable assets to any person.

Mallya, who has fled to the United Kingdom after getting involved in a bank loan default case owing Indian banks over 9,000 crores over his now-defunct Kingfisher Airlines is at present fighting extradition from the UK . Mallya has since then repeatedly publicly offered to make good on his debts.

Mallya has repeatedly told the Supreme Court that he has offered a comprehensive settlement package to the banks to settle the matter.

Supreme Court reserves verdict on Vijay Mallya’s 2017 Contempt case review plea

Anjana Krishna — Thu, 27 Aug 2020 09:04:43 +0000

The Supreme Court reserved its order on the 2017 contempt of court case against fugitive businessman Vijay Mallya on Thursday. He had filed a review plea on the court order by which he was held guilty of contempt of court for transferring $40 million to his children recieved from British firm Diageo.

Mallya is the prime accused in a bank default case of over Rs 9000 crore involving his defunct Kingfisher airlines and has been in the UK since 2016. The banks had alleged that he had concealed the transaction from Diageo and diverted the money. Karnataka High Court found that he had done ‘flagrant violation’ of court orders by transferring the money to his children instead of depositing it with the banks where he was declared defaulter.

A bench comprising of justice UU Lalit and Ashok Bhushan reserved the order of the High Court after hearing the arguements in the review plea.

The apex court had in June directed its registry to explain as to why Mallya’s review petition had not been listed before the court concerned for the last three years. It had directed the registry to furnish all details including names of officials who had dealt with the file concerning the review petition in the last three years.

Vijay Mallya delayed for extradition over past settlements

Aayush Agarwal — Thu, 28 May 2020 07:37:23 +0000

Vijay Mallya has petitioned for asylum in the United Kingdom. He is the Indian fugitive ex-businessman and former Member of Parliament. Mallya is the subject of an extradition effort by the Indian Government to return him from the UK. He shall face charges of financial crimes in India. Mallya is former owner of the Royal Challengers Bangalore cricket team and Kingfisher Airlines.

Mallya’s extradition has been delayed. It could be months before he shall be returned to his country India. It is expected that the extradition is delayed by the UK home office for legal reasons. After laundering money loaned in India he escaped to the UK. After doing so he faces other financial charges in the UK. It is believed that the UK Government has delayed the extradition for this reason. He must first face charges in the UK and then be deported back to India. Moreover, the extradition is not complete until Mallya’s legality is signed by home secretary Priti Patel. He lost all his cases against extradition in the UK courts. “There is definitely some delay. It’s all in the hands of the UK Government.” Said an official at the Indian high commission.

Mallya faces 2 laundering cases. One set by State Bank of India for 10,623 Crores Indian Rupees. Spirits producer Diageo has another case registered. It wants back 303 Crores Indian Rupees paid to Mallya in 2016. This was made to settle his departure from United Spirits Limited. Mallya however argues for 21 Million US Dollars from Diageo that is unpaid to him. This court hearing shall be scheduled on October 2021.