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Scotland Yard arrests Mallya, who gets bail

Published

8 years ago

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Vijay Mallya

[vc_row][vc_column][vc_column_text]Liquor baron to pay for making off with over Rs 9,000 crore, but what about the banks who loaned him the money?

By Sujit Bhar

Karma catches up with you sooner or later. And when karma is worth Rs 9,000 crore in public money defalcated, it will probably catch up with you sooner rather than later, complicit banks’ wishes notwithstanding. Vijay Mallya’s arrest by Scotland Yard, around 9.30pm London time, speaks volumes about how the spat might come back at the banks, none among whom have been penalized for the massive Kingfisher Airlines scam.

Mallya, of course, was produced at the Westminster magistrate’s court later in the day and got bail. Later, he tweeted (see picture): “Usual Indian media hype. Extradition hearing in Court started today as expected.”

We have all been educated on the ills and spills of Mallya, the liquor baron who fled the country a year back, his first class luggage comprising 11 massive suitcases full of goodies that nobody within the law enforcement system presumably saw. He stayed out, spending time at parties and with his Force India Formula One team. Mallya has said he has been termed guilty “without a trial”.

India had taken time to react, having asked the British government only in February to have Mallya extradited. In India he will be facing charges of money laundering and there are several warrants out in the country for him. India cited its extradition treaty with the UK and the extradition request was handed over to the British High Commission in Delhi through a note verbale on February 8.
This is not to say that Mallya can no more manipulate the law enforcement system in India. His party days maybe over for the time being, but freedom isn’t that far off either (if he is transferred back to India, at all, that is. He has already got bail). India’s law enforcement agencies have been as much at fault as the banks, for not only allowing him to flee, but for allowing the businessman run away with huge debts on his shoulders in the first place. Technically, as per recent announcements by the government, there is a move to shift all bank NPAs into another company that will do the necessary debt restructuring. That would also imply that the NPAs will have been removed from the banks’ books. With them will, probably, be removed names such as Vijay Mallya’s.

Technically, the corrupt system of India suits Mallya better than the better organized financial system of the UK where he thought he would spend the rest of his grey-hair days, frolicking. Mallya, in India, will once again land amid his sycophants and cronies, building a formidable legal wall and a Gordian knot that nobody will have the sense to untie with a swishing blade.

On the other hand, if the UK allows his deportation, and if the law acts tough, Mallya will have tomes to write about corrupt bank officials who acted in cohorts with him in siphoning off public money into offshore accounts.

Proclaimed offender

India’s extradition request—Mallya has been declared a proclaimed offender—to the UK government for Mallya was certified by the UK Secretary of State (home minister).

Which meant that the British government realised the gravity of the situation and decided to take action, if the magistrate so felt. External Affairs Ministry spokesperson Gopal Baglay has been quoted in the media as saying: “The UK home department on February 21 conveyed that the request of India for extradition of Mallya has been certified by the secretary of state and sent to the Westminster Magistrates’ Court for a district judge to consider the issue of releasing of warrant.”

It, of course, took into consideration a Delhi court’s decision last week to put out an open-ended non-bailable warrant against him in a case of foreign exchange violation. The 61-year-old’s passport had been cancelled earlier, but initial approaches to the British government fell through because he had a valid British visa and could legally stay in London.

Now that the London court has granted him bail, things just might get a little more complicated for India. The CBI’s chargesheet against Mallya is on cheating and conspiracy. He defaulted on a Rs 900 crore loan from the IDBI bank in 2009. As per the chargesheet Rs 250 crore of this money, meant to buy aircraft, went to one of his offshore accounts instead.

$ 40 million for his children

Technically Mallya is being prosecuted on several counts, including FERA violations. It was the FERA violations issue that can get him back to India, though his huge defalcations from banks rank pretty high. Recently, amid this controversy, Mallya had transferred $40 million to his children. He gave little explanation on his position on this huge transfer. In a tweet he said: “I have humbly obeyed every single Court Order without exception. Seems as if Government is bent upon holding me guilty without fair trial.”

Another interesting tweet by Mallya said: “Public Sector Banks have policies for One Time Settlements. Hundreds of borrowers have settled. Why should this be denied to us?” He said that the loan settlement offer has been rejected by the lenders (banks).

The banking scam and the insolvency door

Now to the banks. Before going into the details, one must recall an interesting comment made by finance minister Arun Jaitley last year. In an effort to explain the fall of Kingfisher Airlines, Jaitley reportedly commented that maybe Mallya’s business model was not right, because other airline companies were making money.

Then he said that law says that a Member of Parliament could lose his membership if he becomes an “adjudged insolvent”. Problem is, for that a bankruptcy law is necessary.

“Generally, if you are not paying, that is different from the legal language in the constitution. There has to be a system under which you are adjudicated and judged as a declared insolvent and that only happens if you have an insolvency law in place. That’s what the parliamentary committee is looking at, not in his context but independent of that,” Jaitley had said.

This one has to pass without comment.

But that the banks were complicit cannot be washed away. It is strange, why Mallya is being considered the only guilty person in all this. Banks, per se, deal with public money. If a bank is lending to an entity, it is the responsibility of the bank (especially when it is a PSU) to verify the credentials of the intended debtor. Loans for small and micro projects are impossible to come by from banks. This has become a proven truth. But when it comes to these big borrowers, the banks’ purse strings open up.

This is a key situation. If Mallya returns, banks should not get away with their ends of deals.[/vc_column_text][/vc_column][/vc_row]

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Mahatma Gandhi’s legacy under threat from Modi government: Sonia Gandhi

Approximately 200 leaders, including CWC members, special invitees, party officials, and former chief ministers, convened for the Congress meeting in Belagavi.

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9 mins ago

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December 26, 2024

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Congress Parliamentary Party (CPP) chief Sonia Gandhi on Thursday said Mahatma Gandhi’s legacy is under threat from those in power in New Delhi and the ideologies and institutions that have nurtured them. She urged the party workers to bolster their commitment to addressing these challenges with determination.

As the Congress Parliamentary Party Chairperson, Gandhi slammed the Narendra Modi government and the RSS, urging action against the forces she accused of fostering the toxic environment that contributed to Mahatma Gandhi’s assassination.

“It was a transformative moment in our nation’s history. Today, we recommit to honoring, safeguarding, and advancing the legacy of Mahatma Gandhi, who has always been and will remain our fundamental source of inspiration,” she stated.

“His influence shaped and guided the remarkable leaders of his time. However, his legacy now faces threats from those in power in New Delhi, along with the ideologies and institutions that support them,” she continued in her message.

“These organisations never stood for our freedom; they vehemently opposed Mahatma Gandhi and are responsible for creating a toxic environment that led to his assassination. Furthermore, they celebrate his assassins,” Gandhi asserted.

She highlighted that “Gandhian institutions across the nation are under assault” and expressed that it is fitting for this meeting to be named Nava Satyagraha Baithak. She called for a renewed determination to confront these forces with all available strength.

Additionally, she encouraged party workers to unite and tackle the challenges ahead with urgency and renewed enthusiasm.

Congress President Mallikarjun Kharge, also speaking at the meeting, accused the BJP of disrespecting freedom fighters, particularly B.R. Ambedkar. He alleged that Prime Minister Narendra Modi and his administration refuse to acknowledge the error made by Home Minister Amit Shah regarding his “extremely insulting” comments about Ambedkar.

In response, the BJP condemned the Congress’s gathering, labeling the Belagavi session as a “monumental mockery of the principles of Mahatma Gandhi.” Senior BJP leader C.R. Kesavan remarked that “Rahul Gandhi’s Congress stands in stark opposition to Mahatma Gandhi and his ideals.”

Approximately 200 leaders, including CWC members, special invitees, party officials, and former chief ministers, convened for the Congress meeting in Belagavi.

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China gives nod to build world’s largest dam on Brahmaputra close to Indian border

The investment in this dam could surpass one trillion yuan (approximately $137 billion), significantly overshadowing all other single infrastructure projects, including China’s own Three Gorges Dam, which is currently recognized as the largest in the world.

Published

38 mins ago

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December 26, 2024

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China has given its nod to construct the world’s largest dam, termed the most significant infrastructure project globally, with an estimated cost of $137 billion, located on the Brahmaputra River in Tibet near the Indian border, raising alarms for neighboring countries, particularly India and Bangladesh.

The Chinese government announced its decision to develop a hydropower project in the lower reaches of the Yarlung Zangbo River, which is the Tibetan nomenclature for the Brahmaputra.

The dam will be sited at a substantial gorge in the Himalayan region where the Brahmaputra river makes a notable U-turn, flowing into Arunachal Pradesh before reaching Bangladesh.

The investment in this dam could surpass one trillion yuan (approximately $137 billion), significantly overshadowing all other single infrastructure projects, including China’s own Three Gorges Dam, which is currently recognized as the largest in the world.

China had previously operationalised the $1.5 billion Zam Hydropower Station, the largest in Tibet, back in 2015. This Brahmaputra dam project forms part of the 14th Five-Year Plan (2021-2025) and is aligned with broader National Economic and Social Development goals and Long-Range Objectives set out through 2035, as established by the Communist Party of China’s key policy-making body in 2020.

Concerns have been raised in India, as the dam would allow China not only to manage water flow but also potentially to release significant water volumes, which could inundate border areas during hostilities. In parallel, India is also pursuing the construction of a dam on the Brahmaputra in Arunachal Pradesh.

In 2006, India and China instituted the Expert Level Mechanism (ELM) to address various matters related to trans-border rivers, which involves China providing hydrological data regarding the Brahmaputra and the Sutlej rivers during the monsoon seasons.

Discussions on data sharing related to trans-border rivers were highlighted in recent talks between the Special Representatives for border issues in India and China, NSA Ajit Doval, and Chinese Foreign Minister Wang Yi, which took place on December 18.

The proposed Brahmaputra Dam presents substantial engineering hurdles, situated along a tectonic plate boundary known for seismic activity. The Tibetan Plateau, often referred to as the “roof of the world,” is susceptible to earthquakes because of its location over tectonic plates.

An official statement released on Wednesday attempted to alleviate fears concerning seismic risks, asserting that the hydropower project is designed to be safe and emphasizes ecological protection.

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India News

SBI PO recruitment 2024: 600 probationary officer posts announced

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44 mins ago

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December 26, 2024

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The State Bank of India (SBI) has released its official notification for the recruitment of Probationary Officers (PO) for 2024. The recruitment drive aims to fill 600 vacancies, including 586 regular positions and 14 backlog positions. Interested candidates can apply online through the official website, sbi.co.in, starting December 27, 2024.

This recruitment drive aims to fill 600 Probationary Officer (PO) positions, offering a great opportunity for aspirants looking to build a career in banking with one of India’s most prestigious financial institutions. The SBI PO posts will be filled through a rigorous three-phase selection process, including preliminary exams, main exams, and a final interview.

Candidates must meet the eligibility criteria, including a graduation degree and age requirements, to apply for the posts. The application process will be conducted online, with important dates for registration, examination, and document submission clearly outlined. Interested candidates are encouraged to check the official SBI website for detailed instructions and begin preparing for the upcoming selection rounds.

Key Dates

  • Application Start Date: December 27, 2024
  • Application Deadline: January 16, 2024
  • Preliminary Exam Call Letters Available: 3rd or 4th week of February 2025
  • Phase-I Preliminary Examination: March 8 and 15, 2025

Eligibility Criteria

  • Educational Qualification: A graduate degree in any discipline from a recognized university or equivalent. Final-year students can apply provisionally, provided they present proof of graduation by April 30, 2025.
  • Age Limit: Applicants must be between 21 and 30 years old as of April 1, 2024 (born between April 2, 1994, and April 1, 2003, inclusive).

Selection Process

The selection process involves three phases:

  1. Phase I: Preliminary Examination
    • An online objective test carrying 100 marks.
  2. Phase II: Main Examination
    • Conducted online, it includes an objective test for 200 marks and a descriptive test for 50 marks.
  3. Phase III: Psychometric Test, Group Exercise, and Personal Interview
    • A psychometric test will profile candidates’ personalities. Shortlisted candidates will participate in group exercises and interviews.

Application Fee

  • Rs. 750/- for Unreserved, EWS, and OBC candidates.
  • No fee for SC, ST, and PwBD candidates.

How to Apply?

Candidates must visit the official website, register, and complete the application process by the deadline. The call letters for the preliminary examination will be available in February 2025.

This recruitment provides an excellent opportunity for aspiring candidates to join one of India’s premier banking institutions. Applicants are advised to carefully review the eligibility and selection criteria before applying.

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