London: Mallya says the items are held by trusts that he has no interest in, according to the banks’ filings. Mallya wasn’t represented at the hearing and didn’t immediately respond to an email seeking comment.
First, businessman Vijay Mallya faced losing his “palatial” London home, with UBS Group AG saying it wanted to foreclose. Then, a judge said he could be extradited to India. Now, banks are eyeing two superyachts and a collection of valuable cars that they believe he may own.
A group of banks — which are trying to collect more than a billion pounds ($1.3 billion) in debt from Mallya — want documents that would shed light on the “true ownership” of assets including yachts, cars and paintings, according to their court filings for a hearing Friday in London.
Mallya says the items are held by trusts that he has no interest in, according to the banks’ filings. Mallya wasn’t represented at the hearing and didn’t immediately respond to an email seeking comment.
The superyachts are the 95-meter (312-foot) Indian Empress and the 50-meter Force India. Force India is impounded in Southampton, southern England, and Indian Empress was sold by a Maltese court in September for 35 million euros ($40 million), which is being held by the court. According to court documents, Force India is owned by a Maltese company and the Indian Empress was owned by an Isle of Man company until its sale.
On board the Indian Empress were an “Elton John piano and high value artwork” and the banks wanted to know whether these had been removed before it was sold, they said in their filings. They didn’t provide details of the piano’s links to the singer.
There are “many very valuable assets” that are held through “a complex ownership structure comprising offshore companies and discretionary trusts,” the banks said.
Though Mallya says he has no interest in those trusts and assets, the banks said they “do not believe him” and argue that he does have an interest in the items, or “has only relatively recently divested himself of his interests to make himself judgment-proof.”
Judge Christopher Hancock adjourned the hearing , saying the case would be considered at a later date.
Enforcement officers found 27 cars — including a Mini Moke, a classic jeep model — at a property linked to Mallya in July and the banks also want more details about these, they said, noting that Mallya is “known as having a keen interest in cars.”
Mallya, 63 — a former member of parliament in India — is fighting multiple lawsuits after defaulting on bank loans. The source of Mallya’s legal problems is about $1.3 billion in loans that he took out in India for the now defunct Kingfisher Airlines Ltd., which he founded in 2005. Disputes over the loans led to civil lawsuits in India and the U.K. as well as criminal fraud charges.
“Banks have given an open licence to their lawyers in England to pursue multiple frivolous litigations against me,” Mallya tweeted on Friday, ahead of the London hearing, though he didn’t say he was referring to that case. “Who is accountable for spending public money on legal fees in such a brazen manner?”
The beer tycoon and founder of Kingfisher Airlines was dubbed the “king of good times” in India, after the tagline for Kingfisher beer. He was arrested in London in April 2017 after a consortium of banks accused him of willfully defaulting on more than 91 billion rupees ($1.3 billion) in debt accumulated by Kingfisher Airlines — a full-service carrier he founded in 2005 and shut down seven years later. A willful defaulter is someone who refuses to repay loans despite having the means to do so.
RBI asks banks to grout ATMs to wall, floor for security by September-end
Mumbai: The Reserve Bank asked banks to ensure their ATMs are grouted to a wall, pillar, or floor by September-end, except those installed in high secured premises such as airports, to enhance security of the cash vending machines.
In 2016, the RBI had st up a Committee on Currency Movement (CCM) to review the entire gamut of security of treasure in transit.
Based on the recommendations of the panel, the central bank has now issued instructions aimed at mitigating risks in ATM operations and enhancing security.
As part of the security measures, all “ATMs shall be operated for cash replenishment only with digital One Time Combination (OTC) locks”.
Also, “All ATMs shall be grouted to a structure (wall, pillar, floor, etc.) by September 30, 2019, except for ATMs installed in highly secured premises such as airports, etc. which have adequate CCTV coverage and are guarded by state/central security personnel”.
Further, banks may also consider rolling out a comprehensive e-surveillance mechanism at the ATMs to ensure timely alerts and quick response, it said.
The new measures to be adopted by banks are in addition to the existing instructions, practices and guidance issued by the RBI and law enforcement agencies.
The RBI also warned the banks that non-adherence of timelines or non-observance of the instructions would attract regulatory action including levy of penalty.
SBI refuses to disclose communication from RBI, govt on electoral bonds
New Delhi: The State Bank of India has refused to disclose any communication it received from the government or the Reserve Bank of India on electoral bonds, terming it “personal information” and held in “fiduciary capacity”.
Responding to an RTI filed by Pune-based activist Vihar Durve who had demanded copies of all letters, correspondence, directions, notifications or e-mails received from the RBI or any government department between 2017 and 2019, the SBI said it cannot be provided by it.
The bank cited two exemption clauses under the RTI Act to deny information — Section 8(1)(e) which pertains to information held in fiduciary capacity and Section 8(1)(J) which pertains to personal information of a person which has no link to any public activity.
“Information sought by the applicant cannot be disclosed as it is in fiduciary capacity, disclosure of which is exempted under Section 8(1)(e) and 8(1)(j) of the RTI Act, 2005,” the Central Public Information Officer of the bank said in his reply.
The bank also refused to give any details of action taken by it on such communications from the RBI and the government.
The electoral bonds, for giving donations to political parties, are being sold through SBI only. The sale opens in SBI branches when the Finance Ministry issues a notification of their sale for a given period.
The scheme of electoral bonds notified by the Centre in 2018 has been challenged in the Supreme Court.
Only the political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the bonds.
The bonds may be purchased by a person who is a citizen of India “or incorporated or established in India,” the government had said in a statement last year.
The bonds remain valid for 15 days and can be encashed by an eligible political party only through an account with the authorised bank within that period only.
A voluntary group working in the field of electoral reforms, Association for Democratic Reforms (ADR), has demanded a stay on the sale while the CPI(M) has challenged it before the Supreme Court in separate petitions.
ADR recently filed an application in the Supreme Court seeking a stay on the Electoral Bond Scheme, 2018 which was notified by the Centre in January last year.
Walmart’s Flipkart, Indian startup GOQii settle dispute over sharp discounting
New Delhi: Walmart unit Flipkart has settled a legal dispute with an Indian startup that alleged it suffered losses because its products were sharply discounted on the global retailer’s website.
GOQii, a seller of smartwatch-type health devices, sued Flipkart last month in a Mumbai court, alleging its devices were discounted by around 70 per cent to the retail price, much more than the two sides had agreed. The court had, as an interim measure, ordered device sales to be halted on Flipkart.
In a joint statement , the companies said the dispute had been resolved and GOQii health devices would again be available on Flipkart. They didn’t say how the settlement was reached.
Vishal Gondal, CEO of GOQii, told Reuters the company would withdraw the case against Flipkart. The e-commerce retailer’s “team worked on a resolution benefitting the brand and the customers”, Gondal said in the statement.
The legal spat was seen as a test case of the giant retailer’s operating strategy in the country.
Small traders and a right-wing group close to Prime Minister Narendra Modi’s ruling party have raised concerns about large e-commerce companies, saying they burn billions of dollars deeply discounting some products to lure customers onto their sites, in the expectation that they will also buy other goods.
GOQii said it signed an agreement last year with a Flipkart unit to sell two of its devices at a price not below 1,999 rupees (USD 28.63) and 1,499 rupees. It later found the devices were being sold for 999 rupees and 699 rupees, calling it “unauthorized” discounting.
In response, Flipkart said it reserved “the right to institute actions for defamation, both civil and criminal”, arguing it wasn’t responsible for any discounts which are determined by third-party firms which sell via its website.
The two companies struck a friendlier tone in their joint-statement on Friday as they brought the legal battle to an end.
“We have ensured constant engagement with GOQii to resolve any differences,” Flipkart said in the statement.
With a 19 per cent market share, GOQii was the second-biggest player in India’s so-called wearables market last year, data from industry tracker IDC showed. The market is dominated by China’s Xiaomi, with Samsung a small player.