Vijay Mallya flies, but 2 lakh investors grounded

February 29, 2016

New Delhi, Feb 29: Over two lakh investors are estimated to be stuck with shares of long-grounded Kingfisher Airlines even as its lenders are now eyeing the Rs 515-crore bounty sealed by main promoter Vijay Mallya as part of a sweetheart deal' to exit United Spirits.

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Diageo, the new owner of United Spirits Ltd (USL), has in return agreed to absolve Mr Mallya of all his personal liabilities' with regard to alleged financial irregularities relating to dealings with UB Group entities.

But USL has asserted that the recovery of loans worth Rs 1,337 crore would be pursued from United Breweries Holdings Ltd (UBHL) through dialogue or other legal means'.

Interestingly, UBHL is now left with a total market value of just about Rs 148 crore although it continues to have more than 51,000 public shareholders, including over 50,000 small retail investors.

Other shareholders include 14 mutual funds, 14 banks/ financial institutions, 10 foreign portfolio investors, one insurer, one government entity, and nearly 100 high net-worth investors (HNIs).

The total number of public shareholders has come down from over 56,000 a year ago, including over 53,000 small retail investors and nearly 175 HNIs.

In the case of Kingfisher Airlines, trading in its shares has been suspended for a long time due to its non-compliance to various listing requirements, including its failure to make timely disclosure of shareholding data and other details.

As per the latest shareholding data disclosure till September 2014, it had over 2.33 lakh small retail investors, over 6,200 HNIs, 13 banks, and other domestic financial institutions, as also five promoter entities.

Ironically, the number of public shareholders across all categories was higher than the levels before the airline was grounded in October 2012. The total number of public shareholders went up during this period from 2.1 lakh to over 2.4 lakh. The company now commands a market cap of just about Rs 110 crore, against that of close to Rs 10,000 crore before it landed in financial mess leading to its grounding.

The airline's unpaid loans worth thousands of crores of rupees led to several banks, including the State-run SBI declaring Mr Mallya, Kingfisher, and UBHL wilful defaulters.

The banks are now said to be eyeing the $75-million (Rs 515 crore) payment that Diageo has agreed to pay to Mr Mallya as part of the deal for his exit as chairman and non-executive director of United Spirits, where UB Group had earlier sold controlling stake to the global liquor giant.

The finer contours of the deal, as also the share price movements in run-up to its announcement and the transfer of liabilities from Mr Mallya to UBHL, are already being scrutinised by various regulatory authorities, including Sebi and the Ministry of Corporate Affairs.

An USL spokesperson had earlier said that they had not received any request from Sebi to date. “Clearly if we do, we will of course provide any information required.”

Comments

MR
 - 
Monday, 29 Feb 2016

Why insn't this rich thief in Jail.?
Is Jail only for the poor?

suleman
 - 
Monday, 29 Feb 2016

Confiscate this RS 515 Crores and pay this to the share holders,investors etc. This should not be another Union Carbide which sold to Dow chemicals and washed its hand.

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News Network
December 17,2025

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Melkar, Dec 17: The 17th Annual Day and Graduation Ceremony of Melkar Women’s PU and Degree College, themed “Fusion-2K25,” was celebrated with dignity and enthusiasm, marking a significant milestone in the institution’s academic journey. The programme reflected the college’s steadfast commitment to academic excellence, character building, and the holistic development of students.

The event was inaugurated by Mr. Asif Mohammed, whose presence greatly enriched the occasion. The celebration was further graced by the chief guests Mr. P. B. Ahmed Mudassir and Mr. Nissar Fakeer Mohammed, along with the distinguished guests of honour Mr. B. A. Nazeer and Mr. Ibrahim Gadiyar. In their inspiring addresses, the guests encouraged the graduating students and appreciated the dedicated efforts of the management, faculty, and students.

The annual report was presented by the Principal, Mr. Abdul Majeed S, highlighting the institution’s academic progress, notable achievements, and extracurricular accomplishments during the academic year.

The presidential address was delivered by the esteemed Chairman of Melkar Women’s PU and Degree College, Dr. Haji S. M. Rasheed, who emphasized the vital role of education in empowering women and shaping responsible citizens. He also stressed the importance of discipline, dedication, and perseverance in achieving success.

Cultural programmes and academic recognitions formed an integral part of the celebration, showcasing the talents and achievements of the students. The graduation ceremony was a proud moment for the outgoing students as they were formally conferred degrees and wished success in their future endeavours.

Ms. Mashmooma Fathima served as the Master of Ceremonies. The welcome address was delivered by Ms. Fathima Nida, and the programme concluded with a vote of thanks proposed by Ms. Ayisha Suhana.

The event successfully achieved its objectives and was highly appreciated by the guests and attendees.

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News Network
December 7,2025

Mangaluru, Dec 7: A 34-year-old fruit and vegetable trader in Mangaluru has reportedly lost ₹33.1 lakh after falling victim to an online investment scam run through a fake mobile app.

Police said the scam began in September, when the victim received a link on Facebook. Clicking it connected him to a WhatsApp number, where an unidentified person introduced a high-return investment scheme and instructed him to download an app.

To build trust, the fraudster asked him to invest ₹30,000 on September 24. The trader soon received ₹34,000 as “profit,” convincing him the scheme was genuine. Over the next two months, he transferred money in multiple instalments via Google Pay and IMPS to different scanner codes and bank accounts shared by the scammers. Between September 24 and December 3, he ended up sending a total of ₹33.1 lakh.

When he later requested a refund of his investment and promised returns, the scammers demanded additional payments, claiming he needed to pay a “service tax” first. Even after he paid a small amount, no money was returned, and the scammers continued pressuring him for more.

A case has been registered at the CEN Crime Police Station.

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News Network
December 16,2025

Mangaluru, Dec 16: The Mangaluru City police have significantly escalated their campaign against drug trafficking, arresting 25 individuals and booking 12 cases under the Narcotic Drugs and Psychotropic Substances (NDPS) Act between November 30 and December 13. The crackdown resulted in the seizure of a substantial quantity of illicit substances, including 685.6 grams of MDMA and 1.5 kg of ganja.

The success of this recent drive has been significantly boosted by the city’s innovative, QR code-based anonymous reporting system.

"The anonymous reporting system has received an encouraging response. Several recent arrests were made based on inputs received through this system, helping police tighten the noose around drug peddlers," said the City Police Commissioner.

The latest arrests contribute to a robust year-to-date record, underscoring the police's relentless commitment to combating the drug menace.

Up to December 14 this year, the police have registered a total of 107 cases of drug peddling, leading to the arrest of 219 peddlers. Furthermore, they have booked 562 cases of drug consumption, resulting in the arrest of 671 individuals.

The scale of the seizure for the year reflects the magnitude of the problem being tackled: police have seized 320.6 kg of ganja worth ₹88.7 lakh and 1.4 kg of MDMA valued at ₹1.2 crore. Other significant seizures include hydro-weed ganja worth ₹94.7 lakh and cocaine worth ₹1.9 lakh, among others.

The Commissioner emphasized a policy of rigorous enforcement: "We ensure that peddlers are caught red-handed so that they cannot later dispute the case or claim innocence."

To counter the rising trend of substance abuse among youth, the Mangaluru City police have rolled out uniform guidelines for random drug testing across educational institutions.

As part of the drive, tests were conducted in approximately 100 institutions, screening an estimated 5,500 to 6,000 students in the first phase. 20 students tested positive for drug consumption during the initial screening.

Students who tested positive have been provided counselling and are scheduled for re-testing in the second quarter. The testing will also be expanded to students not covered in the first phase. In a move to ensure strict implementation, police personnel were deployed in mufti in some institutions. Reiterating a zero-tolerance stance, the Commissioner confirmed that random testing will continue, and colleges have also been instructed to conduct drug tests at the time of admission to deter substance abuse from an early stage.

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