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

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Melkar (Bantwal): The 9th Annual Day celebration of SMR Public School, titled “EXCELLENTIA”, was held on December 15 with great enthusiasm and dignity, marking a significant milestone in the institution’s journey towards academic excellence and holistic development.

The programme was inaugurated by Dr. U. T. Iftikar Ali. The chief guests were Dr. Akhtar Hussain, Mr. P. Moosabba Beary, Mr. Zakaria Jokattre, and Dr. T. M. Abdul Rahuf—whose inspiring addresses motivated the students and appreciated the school’s contributions to education.

Mr. Abdul Nasir, Mr. Ibrahim Gadiyar, Mr. Razak Golthamajal, Mr. Sali Koya, Mr. Arshad Hussain, Mr. Ismail Balanoor, Mr. Feroz Bawa, Mr. Sahul Hameed, Mr. Abubakkar, Mr. Hameed K. Mani, Mr. Abdul Majeed (Principal, Melkar Women’s College), and Mr. Abdul Lathief (Former Principal, Melkar Women’s College) were the guests of honour.

The Annual Report was presented by the Headmistress, Ms. Fathimathul Zaheera, highlighting the school’s achievements and progress during the academic year. The Presidential Address was delivered by the Chairman of SMR Public School, Dr. Haji S. M. Rasheed, who emphasised the vital role of education in shaping students’ futures and stressed the importance of discipline, dedication, and consistent effort in achieving 100 per cent academic results.

Secretary of SMR Public School, Mr. Rifath Ahmed, and PTA President, Mr. Sandeep Kumar, were also present on the occasion.

The Annual Day celebration showcased the collective efforts of students and teachers and reaffirmed the school’s commitment to quality education and all-round development. The programme concluded with a vote of thanks, expressing gratitude to all dignitaries, parents, and well-wishers for their support. The 9th Annual Day—EXCELLENTIA—was a memorable and successful event, leaving a lasting impression on everyone present. 

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News Network
December 7,2025

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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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News Network
December 15,2025

Mangaluru police have arrested a 27-year-old NRI on his return from Saudi Arabia in connection with an Instagram post allegedly containing derogatory and provocative remarks about the Hindu religion, officials said on Monday.

The accused, Abdul Khader Nehad, a resident of Ulaibettu in Mangaluru, was working in Saudi Arabia when the post was uploaded, police said.

A suo motu case was registered at the Bajpe police station on October 11 after an allegedly offensive post circulated from the Instagram account ‘team_sdpi_2025’. Police said the content was flagged for being provocative and derogatory in nature.

During the investigation, technical analysis traced the Instagram post to Nehad, who was residing abroad at the time, a senior police officer said. Based on these findings, a Look Out Circular (LOC) was issued against him.

On December 14, Nehad arrived from Saudi Arabia at Calicut International Airport in Kerala, where he was taken into custody on arrival. Police said further investigation is underway.

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