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Scotland Yard arrests Mallya, who gets bail

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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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Four militants killed as rival Naga groups clash in Manipur village

Four militants were killed in a gunfight between suspected rival Naga groups at Taodaijang village in Manipur’s Noney district on Wednesday.

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Manipur violence

At least four militants were killed in a gunfight between suspected rival Naga militant groups in Manipur’s Noney district on Wednesday, November 4.

The exchange of fire took place at Taodaijang village in the Khoupum area of the Naga-majority district. According to officials, the cadres involved were suspected to belong to rival Naga militant outfits, including the Zeliangrong United Front-Jenchui (ZUF-J) and the Zeliangrong United Front-Kamson (ZUF-K).

Initial reports indicated that the gunfight continued for several hours, leaving three cadres of ZUF-J and one cadre of ZUF-K dead.

The bodies of the deceased militants were subsequently recovered by local residents.

Residents appeal to armed groups to stop firing

Following the gunfight, local residents, including women, reached the spot in an attempt to prevent further violence between the rival groups.

They also used a public address system to appeal to the armed cadres to stop firing and prevent the situation from escalating further.

Further details about the circumstances surrounding the clash were awaited.

Manipur government reviews security situation

In a separate development, Manipur Chief Minister Yumnam Khemchand Singh directed senior security officials to identify active armed groups suspected of involvement in recent incidents of violence in the state.

The directive excluded groups engaged in peace talks with the state government.

The Chief Minister issued the instructions during a review meeting on the state’s law and order situation on Tuesday night.

He also asked security agencies, including the Army and central paramilitary forces, to submit a detailed report on the involvement of the suspected groups.

The Chief Minister said the state Cabinet could consider declaring such groups unlawful if their involvement in violence against innocent civilians was established.

He also emphasised that necessary action would be initiated against groups continuing to perpetrate violence against civilians.

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Agnipath scheme gets 2-year extension for Agniveers, tenure may rise to 6 years

The Centre has introduced a two-year extension for the remaining 75% of Agniveers under the Agnipath scheme, creating another opportunity for them to seek enrolment in the regular armed forces.

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The Centre has introduced a significant change to the Agnipath recruitment scheme, offering a two-year extension to Agniveers who were earlier expected to leave the armed forces after completing their initial four-year service.

Chief of Defence Staff (CDS) General NS Raja Subramani announced the decision on Wednesday following a Union Cabinet meeting. Under the revised arrangement, the 75% of Agniveers who were not initially selected for absorption into the regular armed forces will be offered an additional two-year engagement period.

The development creates another opportunity for these personnel to continue serving in the armed forces beyond their original four-year tenure.

What changes under the revised Agnipath scheme?

Under the original Agnipath framework, Agniveers were recruited for a four-year service period, including training. At the end of this tenure, up to 25% of each batch could be selected for permanent enrolment into the regular armed forces, while the remaining 75% were expected to return to civilian life.

The revised arrangement introduces an additional two-year engagement for the latter group. This means their potential service period could increase from four to six years.

The extension also creates another opportunity for Agniveers to seek enrolment into the regular armed forces after completing the additional two years.

What happens after the additional two years?

According to General NS Raja Subramani, Agniveers completing the extended engagement period and willing to continue serving will be considered for enrolment in the regular armed forces.

Their selection will be based on objective criteria.

This creates an additional pathway for those who are not absorbed into the regular forces after their initial four-year tenure. However, the revised arrangement does not mean that every Agniveer will automatically receive permanent enrolment.

Why has the decision been taken now?

The announcement comes as the first batch of Agniveers recruited under the scheme approaches the completion of its initial four-year service period.

The Agnipath scheme was introduced on June 14, 2022, to recruit personnel into the Indian Army, Navy and Air Force for a fixed four-year engagement.

General Raja Subramani said the scheme had been undergoing periodic reviews, with the performance of Agniveers being continuously evaluated. He also indicated that feedback on their performance had been very positive.

The latest Cabinet decision creates an additional route for retaining personnel beyond the initial engagement period.

What was the original Agnipath arrangement?

Under the original framework, the armed forces could retain up to 25% of Agniveers in the regular cadre after their four-year service period, subject to selection.

The remaining 75% were to complete their engagement and transition to civilian life.

With the latest revision, this group will receive an additional two-year engagement opportunity before being considered for enrolment into the regular armed forces under the prescribed selection criteria.

The change therefore modifies the earlier arrangement by providing an additional opportunity for Agniveers to continue their military careers.

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Hardeep Singh Puri set to win Rajya Sabha bypoll unopposed

Union Minister Hardeep Singh Puri is set to be elected unopposed to the Rajya Sabha from Madhya Pradesh after the returning officer rejected the nomination papers of two independent candidates.

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Hardeep Puri

Union Petroleum Minister Hardeep Singh Puri is set to enter the Rajya Sabha unopposed from Madhya Pradesh after the nomination papers of two independent candidates were rejected during scrutiny on Tuesday.

The two candidates whose nominations were rejected were Kante Sayanna and Rajkumar Lohani, the latter being backed by the Congress. Their rejection leaves Puri as the only candidate in the contest for the vacant Rajya Sabha seat.

According to an official, the result will be announced on November 5, which is also the last date for withdrawal of nominations.

The Returning Officer, Umesh Sharma, examined the nomination papers on the last day of scrutiny and rejected the two independent candidates’ applications.

Objections raised against Hardeep Puri’s nomination

The nomination papers submitted by Puri also faced objections from the two independent candidates and Congress leader Hemant Katare.

They questioned the validity and completeness of Puri’s affidavit filed in Form 26, raising concerns over whether the mandatory details had been properly furnished.

However, after examining the objections, Returning Officer Umesh Sharma concluded that Puri had not violated any requirements under the Representation of the People Act.

Sharma stated in his order that no defect had been found in Puri’s nomination papers that could justify their rejection.

Following the decision, Katare and Congress MLA Atif Aqeel announced that they would approach the court against the order.

Calling the decision an attack on Indian democracy, the Congress leaders said in a statement that Puri’s nomination should have been rejected despite what they described as significant errors.

Why the Madhya Pradesh Rajya Sabha seat fell vacant

The by-election was necessitated by the resignation of Union Minister L Murugan, which left a Rajya Sabha seat vacant in Madhya Pradesh.

With the nomination papers of both independent candidates rejected and Puri’s nomination cleared, the Union minister is set to be elected unopposed.

The final announcement is expected on November 5, the last day for withdrawal of nominations.

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