Regulations
ED slaps Mallya with money-laundering case
New Delhi/Mumbai : The Enforcement Director (ED) on Monday registered a money-laundering case against founder of now defunct Kingfisher Airlines and liquor baron Vijay Mallya, official sources said.
 
"We have filed a case against Mallya on Monday. The case is specifically based on the case registered by the CBI against him and others in 2015," Assistant Director (Enforcement Directorate) A.K. Rawal told IANS in New Delhi.
 
The businessman and the top executives of what was once Kingfisher Airlines (KFA) have been booked under Sections 3 and 4 of the Prevention of Money Laundering Act, Rawal said.
 
The measure follows an audit of the Rs.7,200 crore loan that a consortium of 11 public sector banks led by the State Bank of India (SBI) had extended to the KFA which the airline failed to repay. 
 
The KFA is alleged to have diverted as much as Rs.4,000 crore of that money to international tax havens like Mauritius and Cayman Islands.
 
Other businesses of Mallya were also being scrutinized by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, an official, requesting anonymity, told IANS in Mumbai.
 
Central Bureau of Investigation (CBI) Director Anil Sinha had expressed dismay last week in Mumbai over the laxity of the lending banks and regulatory agencies in taking action against Mallya, other KFA directors and officials.
 
It is feared that Mallya might become a fugitive from law by shifting base to a country where it might be difficult to make him face the law, officials said. The flamboyant businessman recently announced his plans to spend more time in England.
 
He has denied all charges against him and taken exception to being labelled a "wilful defaulter" by lenders. He has also denied he was planning to flee the country and said he was ready to cooperate with the lenders to settle the debt.
 
Last month, Mallya agreed to quit as chairman of United Spirits Ltd. in return for a settlement by the British alcoholic beverages giant Diageo. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

TIHARwale

9 months ago

Vijay Mallya is not the only fraudster who has duped PSBs. only yesterday CBI raided Syndicate Bank branches for frauds over Rs 1,000 crores which happened with collusion of bank officials as the alleged fraud includes the use of fake bills and providing overdraft limits against non-existent life insurance policies

Agyat Vyakti

9 months ago

Off the topic. This is just for awareness.. Qnet and MLM are using friends and relatives to dupe you... You may like to read Qnet modus operandi with screen shots and facts and how to avoid them here ... Please share for public interest.. Qnet Scam in India http://qnetindiascam.blogspot.in/

Tribunal stops Diageo from paying Mallya
Bengaluru : In a setback to industrialist Vijay Mallya, the Debt Recovery Tribunal (DRT) on Monday ordered British liquor major Diageo plc not to pay him the $75 million (Rs.504 crore) agreed as a severance package to quit its Indian arm United Spirits Ltd till the case against him before it is decided.
 
"The presiding officer of the tribunal (R. Benkanahalli) ordered temporary attachment of the severance package amount and directed Diageo not to pay it till our case is finally heard and disposed of," a SBI counsel told reporters here. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

manoharlalsharma

9 months ago

the accused in the given episode claim that there r 11 lac crore NPA and there r more loan taken then this tycoon but only to made him a POSTER BOY.is a big black mark on SYSTEM.only for 7000 crore?

Mohan Krishnan

9 months ago

It is only temporary attachment till the case takes unexpected twist.

PACL Scam: Bhangoo gifted $2.5 million home to daughter just before his arrest
Before his arrest in January 2016, Nirmal Singh Bhangoo, founder and chief of PACL gifted a lavish $2.5 million home in Melbourne to his daughter and son-in-law, reveals a report from The Australian
 
Days before his arrest by Indian authorities, Nirmal Singh Bhangoo, founder and chief of PACL Ltd, formerly known as Pearl Agrotech, involved in the Rs55,000 crore scam, transferred as a gift a $2.5 million inner-Melbourne house to his daughter and son-in-law just three weeks before he was jailed, reveals a report from The Australian.
 
"Land titles records show Bhangoo transferred the home on Mont Albert Road, Mont Albert, in Melbourne's inner east, to his daughter Sukhwinder Kaur and her husband Singh Gurpartap on December 18 last year. There is no listed price for the property transfer, with 'desire to make a gift' entered in the consideration field. Mr Bhangoo appears to have bought the salubrious home for $2.38 million in 2006," the report says.
 
According to the report, in 2011, a Sydney suburban lawyer conducting simple due diligence on PACL, and its Australian arm Pearls Australasia, warned that the group was likely "an illegal syndicate" and a "pyramid scheme". The report says, "Those facts were completely missed by federal government agency Austrade - funded by taxpayers to the tune of $200 million a year, and which introduced Pearls to Australia - and both the Queensland and NSW governments, with former premiers Anna Bligh and Barry O'Farrell heavily endorsing the Indian company."
 
In January this year, the Central Bureau of Investigation (CBI) arrested four officials of PACL, including Nirmal Singh Bhangoo, chairman and managing director (MD), Sukhdev Singh, MD and promoter-director and two executive directors Gurmeet Singh and Subrata Bhattacharya in the Rs55,000 crore collective investment scam.
 
Market regulator Securities and Exchange Board of India (SEBI), as part of its recovery proceedings, too had attached in December 2015 all bank and demat accounts, mutual fund portfolios of PACL and its eight directors and promoters. Besides PACL, its promoters and directors against whom SEBI initiated the proceedings, are Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Nirmal Singh Bhangoo, Tyger Joginder, Gurnam Singh, Anand Gurwant Singh and Uppal Devinder Kumar.
 
 

 

Lodha Committee Notice

 

Meanwhile, the Justice RM Lodha Committee, has asked investors of PACL not to hand over documents related with their investment to anyone till further notice. It also advised investors not to make any fresh investment in PACL.

 

SEBI has formed the three-member Committee headed by Justice Lodha as per directions from Supreme Court to dispose land purchased by PACL so that the sale proceeds can be paid to the investors, who have invested their funds in the Company for purchase of the land.

 

In a public notice published in newspapers on Saturday, the Justice Lodha Committee also asked buyers not to purchase properties owned by PACL or related entities, including its directors.

 

 

SEBI has told The Australian that it is aware of $133 million funnelled to Australia (by Bhangoo and PACL), but the total figure is likely significantly higher and could be as high as $500 million or more, if claims made by Pearls and its associates in recent years are to be believed.
 
According to the report, the $133 million figure represents money sent from Pearls to create the Gold Coast-based Pearls Australasia in September 2009 with struggling Queensland developers Paul Brinsmead and Peter Madrers.
"Pearls Australasia subsequently spent $62 million buying the Sheraton Mirage resort on the Gold Coast and $20 million on refurbishments. Its efforts were boosted by paying Indian cricketers Harbhajan and Yuvraj Singh, and Australian cricketer Brett Lee, large sums of the money to spruik the company," it added.
 
Earlier, The Australian, had revealed that Lee, via his then manager Neil Maxwell, was paid $300,000 to be a "brand ambassador" for Pearls. The report says, "It is not suggested that Mr Maxwell and Mr Lee were aware Pearls was a Ponzi scheme when they endorsed it. The Australian can reveal Mr Maxwell was also involved in a plan by Pearls Australasia to buy the Eastgardens Medical Centre at Pagewood in Sydney's east for $1.5 million from its owners, who included doctor Harry Harinath, who was at the time chairman of Cricket NSW."
 
"At that time, Pearls executives said the company had $660 million to invest in Australia, the medical centre owners were told. Owners of the medical centre located in the Eastgardens Shopping Centre, 9km south of the Sydney CBD, were concerned about the legitimacy of Pearls, and engaged Vaikom Rajeev lawyers of Homebush West to conduct due diligence on the company," it added.
 
According to the report, solicitor Sundar Rajeev, using publicly available information, determined that Pearls was most likely a scam and advised heavily against the sale of the medical centre. Quoting a note by Mr Rajeev, the newspaper said, "There is a reasonable likelihood that Pearls Australasia is being used as a vehicle for perpetuating a pyramid scheme or similar activity in Australia. It is highly risky to sell the medical centre to a company like Pearls Australasia, particularly given the negative credibility of its members."
 
"That advice was in large part based on then long-running legal action by Indian authorities against Pearls, the fact several of its key executives had in 2008 been found to have acted inappropriately, and that Mr Brinsmead and Mr Madrers had previously operated developer Resort Corp, which collapsed in March 2009," the newspaper says.
 
According to The Australian, each of those red flags occurred before Austrade introduced Pearls Group India to Mr Brinsmead and Mr Madrers in mid-2009, leading to the creation of Pearls Australasia. Mr Maxwell told The Australian he had facilitated the meeting between Pearls and the owners of the Eastgardens medical centre because he knew Dr Harinath and was aware Pearls was seeking to enter the healthcare market. "He said he played no other role in the proposed deal, which 'from all accounts didn't go well', " the report said.
 
It further pointed out that from 2008, as their Resort Corp group was floundering, Mr Brinsmead and Mr Madrers paid Austrade tens of thousands of dollars to introduce them to suitable Indian investors. It says, "In May 2009, after the Resort Corp collapse, then Austrade South Asia head Peter Linford introduced the pair to Pearls, leading to the creation of Pearls Australasia. Mr Linford subsequently boasted that he had helped Pearls invest $500 million in Queensland properties and the company was 'looking for more'."
 
PACL (earlier Pearls) is a Delhi-based company, proclaiming itself as a real estate company which has collected huge money for the last 13 years from almost six crore people from all the states in India. 
 
After conducting inquiry, SEBI on 22 August 2014, issued an order directing PACL, its promoters and directors to wind up all the existing CIS and refund the monies collected by the company to investors as per the terms of offer within a period of three months from the date of the Order. 
 
PACL filed an appeal before the Securities Appellate Tribunal (SAT), which was dismissed on 12 August 2015. The SAT directed PACL and its promoters-directors to refund the money within three months. Since the company and its promoters-directors failed to refund the money to the investors as per the directions of SEBI and SAT, the market regulator said it has initiated the recovery proceedings.
 
According to SEBI, the amount due to investors of PACL would be over Rs55,000 crore. This  includes promised returns, further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery of Rs49,100 crore from PACL. 
 
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COMMENTS

vswami

9 months ago

If were to care to 'know':

Anyone having an eye or taste for knowing about such murky deals of the highest order , heard of off and on, mostly in recent times, may not really know, or ever cared to know, what the so fondly named , - Ponzy scheme, besides by any other, really means.
The following sample theoretical definitions of the referred modern concept, available in public domain, may helpfully throw some light:
“A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors.”
“A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator.”
Also , that should be of ‘informative value’ who , whether in any way concerned, or having no concern, but wish to be, out of sheer curiosity if nothing else, wary of how , unimaginably, deep rooted and abysmally and intricately complicated those are.

Vaibhav Dhoka

9 months ago

The committee should direct concerned department to attach all properties of chairman directors and their family members till the amount is returned in full plus criminal action with immediate effect.

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