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.

mallya
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 19,2025

Mangaluru: The Mangaluru CEN police have arrested a 23-year-old man for allegedly posting provocative and misleading content on an Instagram page named “mr_a_titude”, targeting the Bajpe police.

Mangaluru Commissioner of Police Sudheer Kumar Reddy C H identified the arrested as Abhishek M, a resident of Katipalla in Mangaluru.

A case has been registered at the Bajpe Police Station under Sections 353(1)(c), 353(2), 56, and 57 read with Section 189 of the Bharatiya Nyaya Sanhita (BNS) in connection with the post.

According to police, the accused uploaded a photograph of a hotel on the Instagram page and alleged that accused persons in a murder case under the Bajpe police jurisdiction were being given “royal treatment” by the police, including being served beef meals daily from the hotel.

The post further accused the police of supporting criminals, misusing their authority, and betraying public trust. Police said the content was provocative in nature and aimed at inciting public outrage against the police.

Following the post, a case was registered at the Bajpe police station, and further investigation was transferred to the CEN police station.

Police records indicate that the accused has a criminal history, with multiple cases registered against him, including murder, attempt to murder, assault, and robbery at the Surathkal Police Station, and one case at the Kaup Police Station.

The Commissioner said the accused was traced and arrested using technical evidence.

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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 20,2025

Mangaluru, Dec 20: The Mangaluru City Police have issued a detailed traffic advisory ahead of the inaugural ceremony of Karavali Utsava, which will be held at the Karavali Utsava Ground on Saturday.

The festival will be inaugurated at 6:00 pm by Dakshina Kannada District Minister Dinesh Gundu Rao. Cultural and public programmes will be held at the venue every evening and will continue until January 2.

According to City Police Commissioner Sudheer Kumar Reddy, parking of vehicles is strictly prohibited on both sides of the road from Lalbagh to Karavali Utsava Ground. Visitors are requested to park their vehicles only at designated parking areas.

To help the public, traffic signboards and parking guidance flex boards have been installed along the routes leading to the venue. The police have urged commuters and visitors to follow these instructions to ensure smooth traffic movement.

Designated Parking Locations

•    Urwa Market Ground – Cars
•    Gandhinagar Government School (near Press Club) – Two-wheelers and cars
•    Ladyhill Church parking area – Two-wheelers and cars
•    Canara School Ground, Mannagudda – Two-wheelers and cars
•    Thimmappa Hotel premises – Two-wheelers and cars
•    Scout and Guide Bhavana premises (behind Karavali Utsava Grounds) – Two-wheelers
•    Urwa Market Road – Two-wheelers
•    Hat Hill Road – Two-wheelers

The police have appealed to the public to cooperate by following traffic rules and parking guidelines to avoid inconvenience during the festival.

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