Mumbai5 minutes ago
- copy link
Vijay Mallya fled India to the UK in 2016. He was declared a fugitive in 2019. (File)
Stock market regulator Securities Exchange Board of India (SEBI) has banned Vijay Mallya from the Indian securities market for 3 years. The liquor baron, who has been declared a fugitive from India, will not be able to do any kind of transaction in the market for 3 years.
SEBI issued an order on Friday (July 26) saying that Vijay Mallya is barred from accessing the securities market and is also prohibited from buying, selling or dealing in securities, directly or indirectly, or engaging in any manner with the securities market for a period of 3 years.
Vijay Mallya owes around Rs 9 thousand crores to 17 banks of the country.
Holding of any securities will also remain frozen
SEBI said that any holding of securities of Vijay Mallya will be frozen. This also includes units in mutual funds. SEBI’s order regarding Vijay Mallya has come into effect with immediate effect. SEBI was investigating whether Mallya was indirectly involved in the trading of his shares or not.
SEBI’s Chief General Manager Anita Anup wrote that, after considering the facts and material available in this case, I found that Mallya has not only violated the FII rules, but also bought and sold securities in the listed companies of his group in India in an illegal manner. This was against the interests of investors and its purpose was to deceive the market players.
Many accounts were opened in different names
SEBI found in its investigation that Vijay Mallya had found a way to trade in the shares of Herbertson and United Spirits Limited (USL). He had opened several accounts in UBS Bank in different names (Bayside, Suncoast and Birchwood) of which he himself was the beneficiary. These three units transferred $6.15 million which went to Vijay Mallya.
Vijay Mallya was declared a fugitive in 2019
Indian businessman Vijay Mallya, who owned many companies including Kingfisher Airlines, owes about 9 thousand crore rupees to 17 banks of the country. Mallya fled the country to Britain in 2016, from where the Indian government is trying to bring him back to the country. Cases of fraud and money laundering are going on against Mallya. On 5 January 2019, the court declared Vijay Mallya a fugitive.
During the investigation last year, the CBI had claimed that Mallya had bought properties worth Rs 330 crore in Britain and France during the year 2015-16. At that time his company Kingfisher Airlines was in loss. Mallya himself had not repaid the loan to the banks. In the year 2020, on the appeal of ED, France had seized Mallya’s property worth Rs 14 crore present there.
The story of the formation and bankruptcy of Kingfisher company
After the death of his father Vitthal Mallya, Vijay Mallya launched a beer company named Kingfisher Premium under United Breweries (UB) Company in 1978. At the age of 44, Mallya became the chairman of United Breweries Group. It is believed that to promote his beer more, Mallya launched Kingfisher Airlines in 2005.
After this, buying IPL team and Formula One team was seen as an extended marketing strategy of Kingfisher. Mallya also started publishing a calendar in the name of Kingfisher, in which models were presented.
Kingfisher Airlines started incurring losses from 2011. By 2012, the situation became so bad that some flights had to be stopped. Employees stopped getting their salaries. Protests started taking place.
By the end of 2012, more than half of the aircraft were out of service. On October 20, the Director General of Civil Aviation cancelled the licence for not fulfilling the regulatory conditions for flight operations. In February 2013, international flying rights were also suspended.
Till July 2014, the company had a debt of about 9 thousand crore rupees, which was not repaid. After this, the company declared itself bankrupt.
Source link
[ad_3]
