ED Issues Fresh Summons to Mallya For 2 April
The Enforcement Directorate (ED) issued summons to Mallya for the secone time, directing him to appear before the agency on 2 April. ED had earlier issued summons for “personal appearance” on 18 March under the provisions of the Prevention of Money Laundering Act (PMLA) but the liquor baron sought time till April to appear before the agency.
CBI Stands by its Lookout Circular
Adhering to its earlier stance, the CBI said that they will continue with the ‘inform’ status of the Lookout Circular (LOC) against Vijay Mallya. They ‘know what they need to know’ about the liquor baron, the agency claims. An LOC was issued against Mallya on 16 October, which was later revised in November from seeking ‘detention’ to ‘inform’. (The Quint)
CBI Will Probe 5 Lakh Transactions Made by Mallya Using Loan Money
According to the CBI, a total of 5 lakh financial transactions were made by Mallya, involving the Rs 7000-crore bank loan. Out of these 5 lakh financial transactions, 3 lakh transactions were made to four different countries. The agency is gathering all documents related to the transactions made abroad. It will soon send Letters Rogatory (LR) to these countries seeking more information. (The Quint)
Market Regulator Probing Allegations of Round-tripping of USL Shares
Market regulator Securities and Exchange Board of India (SEBI) is probing allegations of round-tripping in six accounts belonging to Mallya, sources said. This is in addition to the ED’s investigation into the money laundering allegations.
Round-tripping is when money leaves the country through channels such as inflated invoices and payments to shell companies abroad but returns to the country through an investment in listed securities. This artificially boosts the stock price of the listed entity. (Livemint)
Heineken Eyes Control of Mallya’s United Breweries
Heineken is likely to ask Vijay Mallya to step down from the board of United Breweries, India’s largest brewer, three people with direct knowledge of the plan told Reuters.
The move could be a prelude to the Dutch firm raising its stake in the maker of Kingfisher beer to above 50 percent. Heineken acquired a 37.5 percent stake in United Breweries in 2008. With Mallya distracted by debts from a collapsed airline venture, this could be a timely grab by Heineken in a market that is growing much faster than the global average. (Reuters)
More Bankers Could Land in CBI Net
The CBI is set to file cases against senior executives of three or four public sector banks, that were part of the lending consortium for Kingfisher Airlines.
This is apart from the case registered in December against five serving and retired IDBI Bank executives. The move comes after Raghunathan and UB Group Chief Financial Officer (CFO) Ravi Nedungadi disclosed details of transactions between banks and the airline to the CBI. (Business Standard)
Mallya Resigns As Director of Royal Challengers Bangalore
IPL franchise Royal Challengers Bangalore has written to the Indian cricket board (BCCI), intimating them about Vijay Mallya’s resignation from the post of Director of Royal Challengers Sports Private Limited (RCSPL).
According to reliable sources, the top BCCI officials in the IPL governing council received an e-mail on 7 March from franchise official Russell Adams, informing the board about the current ownership status in the franchise. (The Quint)
KFA Brand Valuation Less Than Rs 100 Crore, Says Second Valuer
The valuation of the Kingfisher Airlines brand, a year after the airline was grounded in 2012, was estimated at just Rs 200 crore and currently stands at less than Rs 100 crore, according to a second brand valuation conducted on behalf of lenders, said two people directly involved in the matter. This is a sharp decline from the original Rs 4,100 crore valuation assigned to the brand in 2010 by Grant Thornton India.
In August 2013, the consortium of lenders led by SBI decided to hire an independent valuation firm, RBSA Valuation Advisors, to ascertain the potential worth of the Kingfisher Airlines brand. (Livemint)
No Bids for ‘Over-valued’ Kingfisher House
State Bank of India found no bidders for the online auction of Kingfisher House in Mumbai. New dates for the auction will be out soon.
The public sector lender put up the defunct headquarter of the grounded Kingfisher Airlines in Mumbai – popularly known as Kingfisher House – up for auction on Thursday. The base price of the property was set at Rs 150 crore, which obviously proved a bit too pricey for potential bidders. (The Quint)
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