New Delhi: Till three months ago, tycoon Vijay Mallya appeared under no pressure to pay back nearly a billion dollars of loans accrued by his Kingfisher Airlines. Even after he was declared a "willful defaulter" by the State Bank of India, Mr Mallya held a blowout birthday party in December at his famous Goa villa, with about 200 guests, a fireworks display, and pop singer Enrique Iglesias as the headline act.
Now, regulators, banks and the judiciary are all chasing Mr Mallya, whose departure from India was reported a week after he flew to London by Attorney General Mukul Rohatgi. SEBI, the markets regulator, has begun an investigation to determine how and why Mr Mallya was cleared of financial violations charges by Britian's Diageo. In 2013, the maker of Johnny Walker whiskey paid about $1 billion dollars for about 55 per cent of Mr Mallya's United Spirits, which was a part of his UB group.
In April last year, the United Spirits board begun a process to remove Mr Mallya as its chairman due to alleged financial irregularities worth nearly 1,300 crores including the siphoning of money to other companies he owned. Mr Mallya had denied the allegations and refused to resign.
After lengthy hostilities, Diageo said last month that Mr Mallya was no longer liable for the financial wrongdoing that had been found under his watch and pink-slipped 75 million dollars or 515 crores, in return for which the businessman agreed to give up his chairmanship and board position. Under the new arrangement he has been redesignated founder emeritus of the company.
A spokesperson for Diageo confirmed, "We have received a request for information from SEBI and will of course cooperate with them."
Mr Mallya, who tweeted this morning that he is not absconding, has been asked to appear in Mumbai next week for questioning in a money-laundering case. Separately, the CBI is investigating how state-run banks sanctioned enormous loans to Kingfisher Airlines without commensurate security despite as it hit financial ruin.
Now, regulators, banks and the judiciary are all chasing Mr Mallya, whose departure from India was reported a week after he flew to London by Attorney General Mukul Rohatgi. SEBI, the markets regulator, has begun an investigation to determine how and why Mr Mallya was cleared of financial violations charges by Britian's Diageo. In 2013, the maker of Johnny Walker whiskey paid about $1 billion dollars for about 55 per cent of Mr Mallya's United Spirits, which was a part of his UB group.
After lengthy hostilities, Diageo said last month that Mr Mallya was no longer liable for the financial wrongdoing that had been found under his watch and pink-slipped 75 million dollars or 515 crores, in return for which the businessman agreed to give up his chairmanship and board position. Under the new arrangement he has been redesignated founder emeritus of the company.
Advertisement
Mr Mallya, who tweeted this morning that he is not absconding, has been asked to appear in Mumbai next week for questioning in a money-laundering case. Separately, the CBI is investigating how state-run banks sanctioned enormous loans to Kingfisher Airlines without commensurate security despite as it hit financial ruin.
Advertisement
COMMENTS
Advertisement
Non-Bailable Warrant Against Vijay Mallya In 180-Crore Loan Default Case Sidhartha Mallya Marries Girlfriend In London, Shares Pic Of Dreamy Wedding Vijay Mallya's Son To Marry Girlfriend In Week-Long Wedding Festivities 'Entire NEET Paper Solved In 45 Minutes Before Exam?': Top Court To Centre "Had God On My Side": Donald Trump Recounts Being Shot At During Rally 32 Dead In Bangladesh Unrest, Protesters Set Fire To State TV Headquarters Google Brings AI To US Broadcast Of Paris Olympics Video: Children Jump On E-Rickshaw, Chase Foreigners For Money In Delhi "Every Time I Try To Eat Healthy" - Video Creator's Editing Skills Amaze Internet Track Latest News Live on NDTV.com and get news updates from India and around the world.