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 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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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 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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