Mallya to Skip Date With ED, No Takers For Kingfisher House & More

Vijay Mallya won’t seeks time till April to appear before ED, steps down from RCB board.

Businessman Vijay Mallya during the Kingfisher Ultra Indian Derby at the race course in Mumbai on 7 February 2016. (Photo: IANS)

Vijay Mallya Seeks Time Till April to Appear Before ED

Vijay Mallya sought time till April for to appear before the ED, virtually making it clear he would not present himself before the agency after summons were issued by it in the IDBI bank loan default case.

Agency officials still have to take a decision on whether or not to grant his request. (PTI)

No Bids for ‘Over-valued’ Kingfisher House

State Bank of India has 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 auction was part of SBI’s attempt to recover over Rs 1,600 crore in dues from the airline’s promoter Vijay Mallya.

The base price of the property was set at Rs 150 crore, which obviously proved a bit too pricey for potential bidders. (The Quint)

Heineken Eyes Control of Vijay 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 through its takeover of Scottish & Newcastle and has since increased its holding to 42.4 percent. 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)

Vijay 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 March 7 from franchise official Russell Adams, informing the board about the current ownership status in the franchise. (The Quint)

Every Penny Will Be Recovered by Banks From Mallya: FM

Finance Minister Arun Jaitley has reiterated his government’s stand that “every penny will be recovered by banks from Vijay Mallya”. He was responding to a question from Rajdeep Sardesai during India Today Conclave 2016. (India Today)

I have to answer for sins committed by predecessors. Vijay Mallya issue has brought huge bad name to India’s name and banking sector, it is extremely dangerous to the future if we are not ready to give remedy to this. Where ever Mallya has defaulted, strong action will be taken, all banks have been advised to recover every penny taken from them.

Were Banks Under ‘Political Pressure’ to Link to Mallya?

Former chief financial officers of the UB Group – Ravi Nedungadi and A Raghunathan – were on Tuesday interrogated by the Central Bureau of Investigation, in connection with alleged loan fraud and diversion of money. Their replies are now being analysed by the agency.

The agency’s focus, according to sources, is on understanding the role of the two CFOs and if they colluded with Mallya in getting banks to disburse the money. Sources add they were asked about political functionaries who Mallya may have been in touch with around the time the loans were disbursed. The CBI is looking to ascertain if banks were under “political pressure” to disburse loans. (The Times of India)

Trust Set up by Mallya’s Father Alleged Link to Money-laundering Scam

A key link has emerged in the alleged money-laundering scam by Vijay Mallya – an offshore trust based in tax haven Isle of Man set up by his father, Vittal Mallya, in 1982.

Enforcement Directorate (ED) officials said the Golden Eagle Trust may be one of the main recipients of money taken out of India and used in deals in the West, mainly the US and UK, and also in Panama, Monte Carlo and Liechtenstein. (The Economic Times)

Govt to Auction off Mallya’s Personal Airbus Jet, Other Assets

With an eye on recovering service tax dues worth Rs 812 crore, the government is looking to auction off some of Vijay Mallya’s personal assets. On the line are the liquor baron’s Airbus ACJ 319, five smaller ATRs and three helicopters belonging to his long-grounded Kingfisher Airlines. The aircraft are in the possession of the service tax department. The auction may be conducted by 15-16 March. A standard Airbus A319 has a list price of Rs 600 crore.

The IT department officials say Mallya’s personal jet was already on lease and no entity has approached the authorities or the courts regarding the plane. (The Economic Times)

ED, RBI Renew Probe Into Rs 4,000-Crore Fund Transfer from United Spirits

The Enforcement Directorate (ED) and Reserve Bank of India have renewed a probe into the transfer of Rs 4,000 crore from United Spirits (USL) to the British Virgin Islands in early 2007 by the company before it was taken over by Diageo in 2012.

A division bench of the Karnataka High Court ordered the same probe as early as 20 December 2013 but that was never followed up by concerned agencies.

The ED and RBI will look into USL’s transactions and call for relevant papers from the company and Diageo, its new owner, said an official close to the development.(Business Standard)

KFA’s Brand Valuer Grant Thornton in the Dock

Now, the tax and advisory firm which carried out the evaluation of the Kingfisher Airlines brand – Grant Thornton India – is under the scanner.

The Serious Fraud Investigation Office (SFIO), which comes under the Ministry of Corporate Affairs is looking closely at the Rs 4,100 crore valuation attached by Grant Thornton to the Kingfisher Airlines brand in 2011, according to two people familiar with the development. That valuation made the Kingfisher Airlines brand the single largest collateral for its loans. (Livemint)