Sebi bars Vijay Mallya from trading in securities market, co-directorship

January 26, 2017

New Delhi, Jan 26: Cracking the whip, regulator Sebi Wednesday barred beleaguered businessman Vijay Mallya and six others from the securities market in a case related to alleged fund diversions from United Spirits Ltd. Besides, Mallya and former United Spirits' official Ashok Capoor have been restrained from “holding position as directors or key managerial persons (KMPs) of any listed company”

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In an order, Sebi has restrained Mallya and six others from the securities market and also from “buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly” till further directions. The six others are: Ashok Capoor, P A Murali, Sowmiyanarayanan, S N Prasad, Paramjit Singh Gill and Ainapur S R.

Sebi has been looking into the matter pertaining to alleged fund diversions and improper transactions at United Spirits Ltd (USL). Mallya resigned as director and chairman of USL in March 2016. Sebi's order also comes close on the heels of CBI naming Mallya, Kingfisher Airlines and nine others, in the charge sheet related to the 2015 loan default case. In a 32-page order, Sebi Whole Time Member S Raman said the alleged prima facie violations observed in the case are serious and have larger implications on the safety and integrity of the securities market.

“Investors might have based their investment decisions on the manipulated books of accounts prepared and presented by these persons. It would therefore not be in the interest of the securities market and the interest of investors to allow persons of such doubtful demeanour to continue to act as KMPs in the company or in other listed companies or allow them to deal in the securities market,” he said.

According to him, pending investigations in the matter, effective preventive and remedial actions needs to be taken. In its order, Sebi also asked USL to provide details within three weeks about the action taken against Mallya and the six individuals. Besides, the company has to submit information about the steps taken to recover from Mallya and the companies to which the amount was wrongly diverted.

The funds were diverted during the period between 2010 and 2013. As per PwC-UK report, the amount is Rs 655.55 crore while E&Y report estimated the money at Rs 1,225.24 crore, Sebi order cited. The markets regulator also said the “aspect of change in control of USL” that followed the agreement between Diageo and Mallya is being examined separately. Further, Sebi is examining the settlement agreement between Mallya and Diageo as well as the role of auditors in the non-detection of diversion of funds from USL. UK-based Diageo is the majority stakeholder in USL.

As per the notes to the accounts of the company's 2014-15 annual report, the initial inquiry report stated that between 2010 and 2013, funds involved in many transactions were diverted from the company and/or its subsidiaries to certain UB Group companies, including KFA. In February last year, Diageo entered into a settlement agreement with Mallya wherein it agreed to pay USD 75 million to him. Subsequently, Mallya resigned from USL as chairman and non–executive director of USL.

USL and Mallya had entered into a pact wherein they agreed to a mutual release in relation to matters arising out of the Initial Inquiry by USL, according to Sebi. The matter of Diageo entering into a settlement agreement with Mallya vis–a–vis USL's agreement with Mallya is being examined separately, the regulator said. By way of settlement agreement between Diageo and Mallya, the latter had agreed to resign from his position as chairman and director of USL as well as director in other USL Group companies.

“Diageo and USL agreed with UBHL and Kingfisher Finvest India Ltd to terminate the shareholder's agreement entered into between the parties on November 9, 2013. The aspect of change in control of USL is also being examined separately by Sebi.

Comments

Rikaz
 - 
Thursday, 26 Jan 2017

Shaji, he did not eat alone........its politics.....

shaji
 - 
Thursday, 26 Jan 2017

I could not udnmerstand why indian govt is so nice with this defaulter/ cheater / robber / cheater who has looted hudreds of thousands of Dollars from India and enjoying outside. Its shame for Central govt for allowing him to escape. It was of course a planned exit. This robber should be brought in india and pushed in andaman jail for ever. Govt is putting pressure on other simple persons alleging of murder in some other country whereas real culprint is enjying in other country.

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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 19,2025

Mangaluru: Public transport in Mangaluru is set for a state-led transformation as the government moves to deploy 100 new electric govt buses to replace unreliable private services. The initiative aims to provide a dependable alternative to private operators who have been frequently "cutting trips," leaving thousands of commuters stranded.

The announcement was made by Deputy Commissioner and MCC Administrator Darshan HV during a public phone-in session. The move specifically targets routes where private bus service has become erratic, ensuring that citizens no longer have to rely on a fluctuating private sector for their daily commute.

Restoring the Govt Presence

The transport crisis was brought to the forefront by Ramayya, a resident of Bajal, who highlighted a growing trend of private buses skipping morning and night trips. With the previous KSRTC (govt) services discontinued, residents have been left without a fallback option.

To fix this, the DC confirmed that the PM-eBus Sewa Scheme will bring 100 government-owned electric buses to the city:

•    Phased Deployment: The first 50 of the new 100 government buses are scheduled to arrive by March 2026.

•    State Infrastructure: Two new government depots, including one at Mudipu, are being prepared for operations.

•    Recruitment: The state has already begun training a new batch of government bus drivers to ensure the fleet is operational the moment it arrives.

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News Network
December 7,2025

SHRIMP.jpg

Mangaluru, Dec 7: A rare bamboo shrimp has been rediscovered on mainland India more than 70 years after it was last reported, confirming for the first time the presence of Atyopsis spinipes in the country. The find was made by researchers from the Centre for Climate Change Studies at Sathyabama Institute of Science and Technology, Chennai, during surveys in Karnataka and Odisha.

The team — shrimp expert Dr S Prakash, PhD scholar K Kunjulakshmi, and Mangaluru-based researcher Maclean Antony Santos — combined field surveys, ecological assessments and DNA analysis to identify the elusive species. Their findings, published in Zootaxa, resolve decades of taxonomic confusion stemming from a 1951 report that misidentified the species as Atyopsis moluccensis without strong evidence.

The shrimp has now been confirmed at two locations: the Mulki–Pavanje estuary near Mangaluru and the Kuakhai River in Bhubaneswar. Historical specimens from the Andaman Islands, previously labelled as A. moluccensis, were also found to be misidentified and actually belong to A. spinipes.

The rediscovery began after an aquarium hobbyist in Odisha spotted a shrimp in 2022, prompting systematic surveys across Udupi, Karwar and Mangaluru. Four female specimens were collected in Mulki and one in Odisha, all genetically matching.

Researchers warn the species may exist in very small, vulnerable populations as freshwater habitats face increasing pressure from pollution, sand mining and infrastructure development. All verified specimens have been deposited with the Zoological Survey of India for future reference.

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