Liqour Baron Vijay Mallya declared proclaimed absconder by Delhi Court

A court in Delhi here on proclaimed the “King of Good times” Vijay Mallya as an absconder on account of violating the Foreign Exchange Regulation Act (FERA).

Chief Metropolitan Magistrate Deepak Shehrawat passed the judgement keeping in view the submissions made and the fact that the accused Vijay Mallya failed to show up to court even after a lapse of 30 days. Neither was there any representation made on his behalf.

The Enforcement Directorate (ED) had approached the court. The court had then asked Mallya to appear before the court by December 18. The ED had summoned the businessman numerous times with charges of alleged payment of $200,000 to a British firm. This was done to display the Kingfisher logo during the F1 World Championship in London and other European countries in 1996, 1997 and 1998. It was said that the money was paid without prior approval from the Reserve Bank of India, in violation of FERA norms.

Mallya is wanted in India for a numerous cases, such as for defaulting on loans worth Rs 9,000 crores from 17 banks. He has been in the United Kingdom since March 2016, and had earlier stated he would not return to the country.

The Indian Ministry of External Affairs submitted an extradition request to UK after the fugitive businessman made his self-imposed exile clear. The request was made on the basis of an extradition treaty signed between the countries in 1992.

On November 8 2017, the court initiated the process to declare Mallya as a proclaimed offender after it was informed that the open-ended non-bailable warrant (NBW) issued earlier against him was returned after failed execution and the agency had no other resort but to initiate the process under Sections 82 and 83 of the Criminal Procedure Code (CrPC).

Vijay Mallya extradition case: Hearing scheduled in London on July 6

The Westminster Magistrates’ Court in London will hear the extradition case of Kingfisher tycoon Vijay Mallya on July 6.

This decision came after a joint team of India’s Central Bureau of Investigation and Enforcement Directorate submitted relevant documents against him.

Britain’s Crown Prosecution Service will represent India in the court and refuted the claims that Indian government’s extradition request was criticised by the chief magistrate.

NDTV reports say that both CBI and CPS were given a period of four weeks by the court to produce evidence.

India made its first formal request to extradite him on February 8. Mallya lambasted this decision of Indian government and had his first hearing on the extradition case on June 13.

The Indian government, on the other hand has left no stone unturned to ensure that there are no gaps in the Mallya case.

Mallya ws arrested by the Scotland Yard in April but was shortly released on a bail bond worth Rs 6,50,000 pounds. The Indian authorities are after him for a long time after he defaulted on re-payment of loan worth Rs 900 crore.

Mallya and controversies go hand in hand. Last week, he grabbed headlines after he made an appearance at the India-SA Champions Trophy match held at the Oval grounds in London and got heckled at the hands of angry Indian fans who called him ‘Chor’.

Sources: Financial Express, Business Standard

ED attaches Rs 6,630 crore assets to Mallaya

In the latest twist to the ongoing saga of money laundering and bad debts against businessman, Vijay Mallaya and his associates, the Enforcement Directorate (ED) has seized his farmhouse, flats and FDs – worth Rs 6,630 crore on Saturday. This step was taken against the fresh case registered by CBI last month; in addition to the loan default of Rs 6,027 crore filed by SBI led consortium of nationalised banks. So far, the agency has attached assets over Rs 8,000 crore.

Multiple properties and assets including a farm house in Alibaugh worth Rs 25 crore, several flats in the Kingfisher tower in Bengaluru valued at Rs 565 crore, Rs 10 crore worth of fixed deposits at HDFC and shares of USL, United Breweries Limited and McDowell Holding company, jointly held by Mallaya and UBHL and his controlled entities, worth Rs 3,635 crore have been impounded under the provisions of the Prevention of Money Laundering Act (PMLA).

Legally, a provisional attachment under PMLA restrains the accused from accessing the money or assets begotten through illegal means and it can be challenged within 180 days before PMLA’s Adjudicating Authority.

Sources: TOIThe Hindu

GoAir’s IPO to come out next fiscal

New Delhi: The Wadia Group-promoted budget carrier GoAir will now come out with an initial public offer (IPO) next fiscal. This comes amidst the uncertain scheduled delivery of Airbus aircraft which is important for GoAir’s growth strategy.

In October 2015, GoAir had decided to hit the capital market in the current financial year, after IndiGo’s blockbuster IPO. Sources say that GoAir is still awaiting clarity on Airbus A-320 planes, before anything on the IPO is decided. The delivery of the aircraft was to start from April, this year.

GoAir has not made its IPO plan public, and would be looking to raise around USD 150-175 million which at the current exchange rate would be Rs 1,000 to 1,200 crore. Sources claim that apart from the delivery of Airbus aircrafts, market conditions is also something GoAir is looking at before deciding on the IPO timing.

The airline’s fleet expansion indicated a potential delay in delivery of 72 A320 Neos due to ‘industrial reasons’, as claimed by Airbus. GoAir was to have 26 Airbus A320 Neos by end of 2017. At the moment, the airline has 19 A320s in fleet that operate 144 domestic flights across 22 destinations in the country.

According to existing regulations a domestic carrier needs to have minimum five years of operational experience and 20 aircrafts. The IPO will only help GoAir to spread across international destinations, for which it needs minimum 20 aircrafts.

GoAir would technically be the fifth domestic airline to come up with an IPO after Jet Airways, SpiceJet, IndiGo and Kingfisher, which was listed before it got grounded in 2012.

 

SOURCES: Economic TimesNDTV Profit

Kingfisher Airlines top defaulter at Rs. 4022 crore in debts

New Delhi: Vijay Mallya’s Kingfisher Airlines has emerged as the nation’s top non­-performing asset (NPA) after it defaulted on loans worth over 4,000 crores, from mainly state ­owned banks. This highlights the woes of the lenders as they need to raise over 2.4 lakh over a period of five years to meet the growing needs of the Indian economy. Winsome Diamond & Jewelrey is at no.2, with debts totalling Rs. 3,200 crore. Engineering firm Electrotherm India is at third with Rs. 2,600 crore in debt. The data compiled by the finance ministry shows that the top 50 defaulters have outstanding debts of over Rs. 53,000 crore at the end of December 2013. Banks, reported having non-­performing assets and restructured assets of government, which have tried to crack down on defaulters for years, have had limited success as the companies are able to exploit loopholes in the legal system to borrow money.

 

 

Read more at:  http://timesofindia.indiatimes.com/Business/India-Business/Vijay-Mallyas-Kingfisher-Airlines-is-king-of-defaulters-at-Rs-4022-crore/articleshow/38509299.cms

Kingfisher Airlines is the biggest defaulter of debts in the country.
Kingfisher Airlines is the biggest defaulter of debts in the country.

Image courtesy: economictimes.in

Mallya celebrates 58th by offering gold

UB group chairman and promoter of the debt-ridden Kingfisher Airlines, Vijay Mallya made an offering of gold bricks, weighing about 3 kgs to Lord Venkateshwara at the Tirumala Temple today.

Celebrating his 58th birthday, Mallya requested the temple authorities to use the gold for gilding the doors at the sanctum.

For further details, read the whole article here

Dr Malla celebrated his birthday at a simple function held at the Tirumala Tirupati Devasthanams guesthouse.
Dr Malla celebrated his birthday at a simple function held at the Tirumala Tirupati Devasthanams guesthouse.