|
|
|
Kingfisher Airline promoters prevented shares for use in settling bank claims
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 11 Feb, 2019
Promoters of Kingfisher Airlines Ltd (KAL), including embattled liquor
baron Vijay Mallya and United Breweries Holdings Ltd (UBHL), were in
possession of substantial quantities of movable assets in the form of
shares of various public limited companies but showed no intention to
clear dues of banks with these instruments, the Enforcement Directorate
(ED) investigation into the affairs of the now defunct airlines has
revealed.
Investigations by ED under the provisions of the
Prevention of Money Laundering Act (PMLA), 2002, has found that both
Mallya and UBHL held shares of Rs 3,847.45 crore in various public
limited companies of the group.
In fact, out of Mallya's total
holding of Rs 1,773.49 crore (as on August 12, 2016) in the shares of
UBHL, United Spirits, United Breweries and Mcdowell, shares to the tune
of Rs 1,653 crore were pledged/encumbered with UTI Investor Services.
But
ED investigation revealed that of all the pledged shares of Mallya with
UTI Investor Services, the lien was not removed/cleared even though
liability towards the same had already been cleared off. This mean that
banks could not attach the shares towards their dues as such transfer of
shares could not be done under the lien arrangement.
"These
facts again indicate the intent of Vijay Mallya regarding non-payment of
the dues to the consortium of banks. If he had the sincerity and
willingness for repayment, he would have got possession of these shares
and used these for repayment," the investigation report of the ED in its
provisional attachment order said.
The ED investigation has
also questioned the real motive of a web of dummy and investment
companies created under Mallya empire including UBHL, the other parent
of KAL. Together some of these entities hold shares valued at Rs 3,822
crore (as of August 2016), but Mallya did not declare his interest in
some of these companies, thereby evading attachment.
Probe into
the affairs of these companies that includes names such as Devi
Investment, Kingfisher Finvest, Mcdowell Holdings, Pharma Trading
Company, Gem Investment and Trading, Watson Ltd, Vittal Investment,
Kamsco Industries, Firstart Inc and Mallya Pvt Ltd, has revealed that
these were investment companies of UB Group or Mallya or his family
members or dummy companies in the name of UB Employees having no actual
activities and independent source of income but were being directly or
indirectly controlled by Mallya.
The worth of unpledged shares
held by investment entities is about Rs 1,800 crore that could have been
used to pay back more than a third of outstanding loan of KAL.
Moreover, even against pledged shares worth about Rs 2,000 crore of
these entities, a substantial portion could have been taken out as loan
outstanding against these was just Rs 755 crore.
In view of its
findings, ED has concluded that the Mallya-led KAL was actually involved
in offence of money laundering and generated `proceeds of crime' (PoC)
through aforesaid criminal activities related to scheduled offence. PoC
is Rs 4,235 crore of loans outstanding against KAL where ED
investigation has established that Mallya had no intent of pay.
In
addition to shares, ED also sought attachment of under construction
flats in Kingfisher Tower, Bengaluru, valued at about Rs 550 crore and
land parcel along with a farm house at Mandwa, Alibaug, worth Rs 25
crore.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|