Cornered Vijay Mallya offers Rs 1590 cr as intent to pay debt

April 22, 2016

New Delhi, Apr 22: Vijay Mallya, the Indian liquor baron battling creditors seeking to recover dues, offered to deposit Rs 1,590 crore ($240 million) with India's top court to establish his intent to settle with lenders who had rejected an earlier payment proposal.

Vijay
Lawyers representing the founder of the collapsed Kingfisher Airlines Ltd, who the government says left the country earlier this year, filed an affidavit in the Supreme Court on Thursday in response to a directive to declare all his assets. The debt owed by the failed carrier is at the centre of India's drive to crack down on defaulters and clean up the balance sheets of its banks weighed down by soured loans.

Mallya also told the court that overseas assets are not considered while granting loans, and sought permission to file information of his assets in a sealed cover on June 26.

He also said banks had no right to any of this information as they were not involved in overseas assets recast. He further added that he can make an additional payment of Rs 1,398 crore withheld by the Karnataka High Court.

Reiterating his earlier position, Mallya told the court he isn't a "wilful defaulter" and the airline was "genuine commercial failure."

He was making all efforts to work out a settlement "in all sincerity" by offering to pay "to the extent possible and feasible" until the government suspended his passport and a court in Mumbai issued a non-bailable warrant against him, he said in the filing.

India's foreign ministry, acting on an application by the Enforcement Directorate, said April 15 that Mallya had a week to respond to why his diplomatic passport shouldn't be impounded or revoked, after suspending it for four weeks. The government says Mallya and Kingfisher owed as much as 90.9 billion rupees ($1.37 billion) as of November 30.

Meanwhile, armed with a non-bailable arrest warrant against him, the Enforcement Directorate has approached the External Affairs Ministry seeking initiation of deportation proceedings against Mallya in connection with its money laundering probe against him in the Rs 900 crore IDBI alleged loan fraud case.

The agency has written to the ministry of external affairs and will also soon write to the Central Bureau of Investigation to get an Interpol Red Corner Notice issued against Mallya to get him arrested, based on the warrant issued by a Mumbai court.

Last week, MEA had suspended Mallya's diplomatic passport and has sought a reply from him as to why his passport should not be revoked.

Sources said once the deportation proceedings are initiated, MEA will seek assistance of its counterparts in the United Kingdom to interdict Mallya and fly him back to India.

"The grounds for deportation are primarily two. A non-bailable warrant issued by the Mumbai court and suspension of the passport of the businessman," they said.

Mallya is understood to be in the UK after he left India on March 2.

A Hyderabad court had on Wednesday convicted Mallya in a cheque-bouncing case filed against him by GMR Hyderabad International Airport.

With the latest request for deportation, the ED has virtually deployed all legal measures in place to bring back Mallya to India and make him join investigations "in person", which the agency had stated in a Mumbai court was essential to take the probe forward in the case.

The 60-year-old industrialist has skipped three summons issued by ED in this regard in the past. He had also sought time till May to depose before agency investigators.

ED has registered a money laundering case against Mallya and others based on an FIR registered last year by the CBI.

The agency is not only investigating the financial structure of the now defunct Kingfisher Airlines but also looking into any payment of kickbacks to secure loans from IDBI and probing laundering of funds to overseas destinations by the group.

The agency had alleged that Mallya had siphoned off Rs 430 crore of the IDBI loan and used this money to acquire properties abroad, a charge denied by Kingfisher.

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News Network
April 25,2024

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The Election Commission of India on Thursday announced that it had taken cognisance of violations to the Model Code of Conduct by both Prime Minister Narendra Modi and Congress leader Rahul Gandhi.

While Modi has indulged in a diatribe against Muslims, without naming them, using terms like 'infiltrators' and 'those with more children', Rahul has been accused of making a false claim about 'rise in poverty'.

Both the BJP and INC have raised allegations of causing hatred and divisions based on caste, religion, language, and community, ANI reported.

While the EC had initially refused to comment on Modi's speeches, sources had told PTI that the commission was 'looking into' the remarks made by the BJP leader.

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News Network
April 25,2024

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Electronics Corporation of India Ltd and Bharat Electronics Ltd have refused to disclose the names and contact details of the manufacturers and suppliers of various components of EVMs and VVPATs under the RTI Act citing "commercial confidence", according to RTI responses from the PSUs to an activist.

Activist Venkatesh Nayak had filed two identical Right To Information applications with the ECIL and BEL, seeking the details of the manufacturers and suppliers of various components used in the assembling of the electronic voting machines (EVMs) and voter-verifiable paper audit trail (VVPATs).

The VVPAT is an independent vote verification system which enables electors to see whether their votes have been cast correctly.

The ECIL and the BEL, public sector undertakings under the Ministry of Defence, manufacture EVMs and VVPATs for the Election Commission.

Nayak also sought a copy of the purchase orders for the components from both PSUs.

"Information sought is in commercial confidence. Hence details cannot be provided under Section 8(1)(d) of the RTI Act," BEL said in its response.

A similar response was sent by ECIL which said the details requested are related to a product which is being manufactured by ECIL, and third party in nature.

"Disclosing of details will affect the Competitive position of ECIL. Hence, Exemption is claimed under section 8(1) (d) of RTI ACT, 2005," it said.

In response to the purchase order copies, ECIL's central public information officer said the information is "voluminous" which would disproportionately divert the resources of the Public Authority.

"Further, the information will give away the design details of EVM components. The same may pose a danger to the machines produced. Hence, the exemption is claimed U/s 7(9) and under section 8(1)(d) of RTI Act, 2005," ECIL said.

Section 8(1)(d) of the RTI Act exempts from disclosure the information, including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information.

Section 7(9) of the Act says the information shall ordinarily be provided in the form in which it is sought unless it would disproportionately divert the resources of the public authority or would be detrimental to the safety or preservation of the record in question.

"I don't know whose interests they are trying to protect against the right to know of close to a billion-strong electorate. ECIL said that disclosure of the purchase orders will reveal the design details of the components and this may pose a danger to the machines produced. ECIL did not upload even a signed copy of its reply on the RTI Online Portal," Nayak said.

He said it is reasonable to infer that the two companies are not manufacturing every single item of the EVM-VVPAT combo or else the two companies would have replied that they are manufacturing all these components internally without any outsourcing being involved.

"But the electorate is expected to take everything about the voting machines based on what the ECI is claiming in its manuals and FAQs," Nayak said.

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News Network
April 26,2024

evm.jpg

The Supreme Court of India on Friday, April 26, rejected pleas seeking 100% cross-verification of votes cast using EVMs with a Voter Verifiable Paper Audit Trail (VVPAT) and said “blindly distrusting” any aspect of the system can breed unwarranted scepticism.

A bench of Justices Sanjiv Khanna and Dipankar Datta delivered two concurring verdicts. It dismissed all the pleas in the matter, including those seeking to go back to ballot papers in elections.

An EVM comprises three units – the ballot unit, the control unit and the VVPAT. All three are embedded with microcontrollers with a burnt memory from the manufacturer. Currently, VVPATs are used in five booths per assembly constituency.

EVM VVPAT case: Supreme Court issues two directives

1.    Justice Khanna directed the Election Commission of India to seal and store units used to load symbols for 45 days after the symbols have been loaded to electronic voting machines in strong rooms.

2.    The Supreme Court also allowed engineers of the EVM manufacturers to verify the microcontroller of the machines after the declaration of the results at the request of candidates who stood second and third. The top court said the request for the verification of the microcontroller can be made within seven days of the declaration of the results after payment of fees.

Option for candidates to seek verification of EVM programmes

•    Candidates who secure second and third position in the results can request for the verification of burnt memory semicontroller in 5% of the EVMs per assembly segment in a Parliamentary constituency. The written request to be made within seven days of the declaration of the results.

•    *On receiving such a written request, the EVMs shall be checked and verified by a team of engineers from the manufacturer of the EVMs.

•    Candidates should identify the EVMs to be checked by a serial number of the polling booth.

•    Candidates and their representatives can be present at the time of the verification.

•    After verification, the district electoral officer should notify the authenticity of the burnt memory.

•    Expenses for the verification process, as notified by the ECI, should be borne by the candidate making the request.
What did the Supreme Court say?

•    "If EVM is found tampered during verification, fees paid by the candidates will be refunded," the bench said.

•    "While maintaining a balanced perspective is crucial in evaluating systems or institutions, blindly distrusting any aspect of the system can breed unwarranted scepticism...," Justice Datta said.

Who filed the petitions?

NGO Association for Democratic Reforms, one of the petitioners, had sought to reverse the poll panel's 2017 decision to replace the transparent glass on VVPAT machines with an opaque glass through which a voter can see the slip only when the light is on for seven seconds.

The petitioners have also sought the court's direction to revert to the old system of ballot papers.

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