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Counted as it is among the world’s fastest growing economies, an unfathomable amount of money flows in and out of the Indian economic system. But there are cracks in said system, and ever so often, a fraudulent mastermind uses them to slip some cash out for their advantage. From <keyword id="19964851" type="General" weightage="20" keywordseo="ponzi" source="keywords">Ponzi</keyword> schemes to bank frauds, the Indian government and investors have fallen victim to many financial scandals — some of which were so sordid that they can be recounted like they happened yesterday. Here’s a rundown of the most infamous scams in Indian financial history: <h2><keyword id="20713434" type="General" weightage="20" keywordseo="harshad-mehta" source="keywords">Harshad Mehta</keyword> Scam (1992) – ₹4,000 Crore </h2>Perhaps the most iconic of all Indian financial scams, Harshad Mehta was known as the "Big Bull" of the stock market. He manipulated stock prices using illegal loopholes in the banking system. By obtaining unsecured loans from banks and investing them in the stock market, Mehta artificially inflated stock prices. His bubble burst when banks demanded their money back, revealing the massive fraud. This scandal led to a major reform in India's financial markets. Mehta died in jail before full legal accountability was reached, but the scam caused a significant loss to investors and led to tighter regulation in the Indian stock market. <h2><keyword id="23122396" type="General" weightage="20" keywordseo="satyam-scam" source="keywords">Satyam Scam</keyword> (2009) – ₹14,000 Crore </h2>Dubbed as India’s Enron, the Satyam scandal involved its founder, <keyword id="23122397" type="General" weightage="20" keywordseo="ramalinga-raju" source="keywords">Ramalinga Raju</keyword>, admitting to falsifying the company's accounts to the tune of ₹14,000 crore. Satyam Computer Services, once considered a blue-chip company, was found guilty of inflating profits and revenues. Raju admitted to the scam after a failed attempt to buy two Maytas firms owned by his family. This case brought corporate governance issues in India to the forefront. Raju was convicted, but the legal processes have allowed him temporary freedom through bail. But this incident called for improved transparency and stricter corporate governance norms. <h2>Punjab National Bank Scam (2018) – ₹13,700 Crore </h2>Diamond merchant Nirav Modi and his uncle Mehul Choksi orchestrated one of the largest frauds in Indian banking history by obtaining fraudulent Letters of Undertaking (LoUs) from Punjab National Bank (PNB). These LoUs allowed them to obtain loans from foreign branches of Indian banks without providing any collateral. The scam involved over ₹13,700 crore, and Modi fled the country, causing significant reputational damage to India’s banking sector. Nirav Modi’s extradition is still pending, and Mehul Choksi remains out of India’s legal jurisdiction. The scam, however, resulted in strengthened banking regulations regarding LoUs and SWIFT transactions. <h2><keyword id="23122399" type="General" weightage="20" keywordseo="vijay-mallya-scam" source="keywords">Vijay Mallya Scam</keyword> (2016) – ₹9,000 Crore</h2>The "King of Good Times" was living large while his airline, Kingfisher, was drowning in debt. Vijay Mallya allegedly defaulted on loans amounting to ₹9,000 crore from various banks. He fled to the UK in 2016, leaving creditors, employees, and stakeholders in financial distress. His lavish lifestyle amidst the collapse of his airline made this scandal a high-profile case. Mallya’s extradition process is ongoing, but he remains out of reach of Indian authorities. The main impact was enhanced scrutiny of loan defaults and triggered legal reforms on extradition. <h2>Saradha Chit Fund Scam (2013) – ₹2,500 Crore </h2>The Saradha Group, operating a ponzi scheme disguised as a chit fund, promised unrealistically high returns to its investors, mostly in West Bengal and Odisha. The scam collapsed, leaving over 1.7 million people, many of whom were low-income investors, without their life savings. Politicians and celebrities were also implicated in the case. While Sudipta Sen is behind bars, not all the accomplices have been held accountable. But this Ponzi scheme resulted in reform of chit funds and greater regulatory oversight on such investment schemes. <div type="Article" hostid="261" msid="112337071" title="Noida woman invests in stock market via an app, loses over Rs 69 lakh as it turns out to be a scam" mstype="2" mssubtype="0"></div> <h2><keyword id="6560832" type="General" weightage="20" keywordseo="2g-spectrum-scam" source="Orion">2G Spectrum Scam</keyword> (2008) – ₹1,76,000 Crore </h2>The 2G spectrum allocation scandal involved the underpricing of telecom licences to select companies in exchange for bribes. Telecom minister A. Raja was at the centre of this controversy, which allegedly caused a loss of ₹1.76 lakh crore to the exchequer. The case was seen as a massive blow to public trust in India’s telecom sector and led to significant political fallout. Sadly, all key figures involved were acquitted despite the Supreme Court’s intervention and cancellation of 122 telecom licences. <h2><keyword id="455134" type="General" weightage="20" keywordseo="coal-allocation-scam" source="Orion">Coal Allocation Scam</keyword> (Coalgate) (2012) – ₹1,86,000 Crore </h2>The coal allocation scam, or "Coalgate," involved the illegal allocation of coal blocks to private companies between 2004 and 2009. The CAG of India estimated a loss of ₹1.86 lakh crore to the exchequer due to non-competitive bidding. Many high-profile politicians and industrialists were implicated, making this one of the largest political scandals in India. While some officials faced legal consequences, many key players were not prosecuted. But it did trigger policy reforms in the allocation of natural resources. <h2>DHFL Scam (2019) – ₹34,615 Crore </h2>Dewan Housing Finance Corporation Limited (DHFL) was accused of syphoning off over ₹34,000 crore through a series of shell companies and fraudulent loans. Investigations revealed that the promoters used these funds for personal enrichment and illegal political donations. The case came to light after an investigation by investigative journalists and was later confirmed by a report from KPMG. The case is ongoing, and the main accused are in custody. For now, regulations governing non-banking financial companies (NBFCs) have been strengthened. <h2>Yes Bank Crisis (2020) – ₹3,788 Crore </h2>Yes Bank, under its founder <keyword id="19899935" type="General" weightage="20" keywordseo="rana-kapoor" source="keywords">Rana Kapoor</keyword>, was involved in questionable lending practices. The bank made high-risk loans to companies already in financial trouble, which eventually turned into non-performing assets (NPAs). Kapoor was arrested, and the Reserve Bank of India had to step in to stabilise the bank. The case highlighted serious lapses in corporate governance and risk management. As of now, Rana Kapoor is facing trial, and legal proceedings are active. The RBI has also introduced new measures to monitor the health of banks more rigorously. <h2>Commonwealth Games Scam (2010) – ₹70,000 Crore </h2>The 2010 Commonwealth Games held in New Delhi were overshadowed by corruption allegations involving inflated contracts and kickbacks. <keyword id="23122398" type="General" weightage="20" keywordseo="suresh-kalmadi" source="keywords">Suresh Kalmadi</keyword>, the head of the organising committee, was arrested for awarding contracts at exorbitant rates. The estimated loss to the exchequer was around ₹70,000 crore. This scam tarnished India’s image on the global stage. Kalmadi was arrested but the case has not resulted in major convictions or recoveries, except for stricter oversight on large public projects and international event planning. These scams not only caused financial damage but also eroded public trust in India’s institutions. In response, India has tightened regulatory frameworks, improved corporate governance, and adopted stricter banking standards, although challenges persist in tackling large-scale fraud. <div type="Article" hostid="261" msid="112896255" title="I was scammed out of $300K in a 3-month-long government impersonation scam" mstype="2" mssubtype="0"></div>

10 financial scams that shook India: A dive into deception

Sultanpur (Uttar Pradesh) [India], February 20 (ANI): <keyword id="19895371" type="General" weightage="20" keywordseo="congress" source="keywords">Congress</keyword> leader <keyword id="19895780" type="General" weightage="20" keywordseo="rahul-gandhi" source="keywords">Rahul Gandhi</keyword> was granted bail on Tuesday in a defamation case dating back to August 2018. The District Civil Court in Sultanpur had issued a summons to him 36 hours earlier to appear before it on a defamation case filed by a BJP leader in August 2018. "This morning Rahul Gandhi will be at the District Civil Court in Sultanpur that had issued a summons to him 36 hours earlier to appear before it on a defamation case filed by a BJP leader in August 2018. Bharat Jodo Nyay Yatra will not be derailed. Rahul Gandhi will not be silenced. The Indian National Congress will not be intimidated," he said in a post on 'X'. The Bharat Jodo Nyay Yatra entered its 38th day on Tuesday. The yatra will start from Fursantganj in Amethi district and will move towards Raebareli and Lucknow today. "Today is the 38th day. We have paused the yatra this morning. At 2 pm, we will start again from Fursatganj. There will be a public rally in Raebareli. After that, we will move towards Lucknow," he told ANI. Congress leader Rahul Gandhi has been summoned by the District Civil Court in Sultanpur on February 20 in connection with a 2018 case over using derogatory remarks against Union Home Minister Amit Shah in a Bengaluru conference. The complaint was filed by the then BJP District Vice President, <keyword id="20655492" type="General" weightage="20" keywordseo="vijay-mishra" source="keywords">Vijay Mishra</keyword>. "I was the vice president of BJP when this incident happened. Rahul Gandhi had accused Amit Shah in Bengaluru that he is a murderer. When I heard these allegations, I felt very pained because I am a 33-year-old worker of the party. I filed a complaint regarding this through my lawyer and this continued for almost 5 years. Today the decision came in this," Vijay Mishra told ANI. Santosh Kumar Pandey, lawyer appeared for Vijay Mishra said that Congress MP Rahul Gandhi can be given a maximum punishment of 2 years if sufficient evidence found against him. "Congress leader Rahul Gandhi held a press conference in Bengaluru. About 5 years ago Amit Shah who is currently the Home Minister, objectionable remarks were made against him. On August 4, 2018, this case was filed in the District and Sessions Court of MP-MLA Court Sultanpur. On which on Monday, Judge <keyword id="20655491" type="General" weightage="20" keywordseo="yogesh-kumar-yadav" source="keywords">Yogesh Kumar Yadav</keyword> of MP MLA Court Sultanpur has summoned Congress leader Rahul Gandhi on December 16. This statement came from Rahul Gandhi during the Karnataka elections in Bengaluru in 2018," Santosh Kumar Pandey told ANI. The Congress's 'Bharat Jodo Nyay Yatra', succeeded by the party's 'Bharat Jodo Yatra', aims to cover 6,700 km through 15 states, with <keyword id="19895394" type="General" weightage="20" keywordseo="lok-sabha" source="keywords">Lok Sabha</keyword> polls around the corner. (ANI)

Rahul Gandhi gets bail in 2018 defamation case

Hours after his arrest, beleaguered businessman <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> was granted bail. Mallya, who is wanted in India over unpaid loans of around Rs 9,000 crore, appeared before the Westminster Magistrates Court. Mallya was arrested in relation to extradition request from the UK to India. He was arrested under the Mutual Legal Assistance Treaty by the <keyword id="713995" type="ORGANIZATION" weightage="20" keywordseo="London-Metropolitan-Police">London Metropolitan Police</keyword> on behalf of Indian authorities on fraud accusations. Mallya, 61, fled to Britain in March 2016 after banks sued to recover about $1.4 billion that Indian authorities say Kingfisher owes. Mallya’s counsel told ETNow that he was granted bail and was already home. Mallya took to Twitter and said the appearance before court was slated

Breaking News: Vijay Mallya granted bail; says extradition hearing was “expected”

Liquor baron <a href="http://www.businessinsider.in/searchresult.cms?query=vijay+mallya&amp;sortorder=effectivedate">Vijay Mallya</a> was granted bail hours after he was arrested by the <a href="http://www.businessinsider.in/searchresult.cms?query=scotland+yard&amp;sortorder=effectivedate">Scotland Yard</a>. Mallya, who has been charged with conspiracy and fraud over a loan to his defunct <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword>, fled to Britain in March last year. He has set his base in London. Banks in India have sued Mallya to recover some Rs 9,000 crore and he has been charged with conspiracy and fraud Mallya has always dismissed the charges, saying "not one rupee was misused". Meanwhile, Mallya was arrested in relation to extradition request from the UK to India. He was arrested under the Mutual Legal Assistance Treaty by the <keyword id="713995" type="ORGANIZATION" weightage="20" keywordseo="London-Metropolitan-Police">London Metropolitan Police</keyword> on behalf of Indian authorities on fraud accusations. Here’s the full text of what <keyword id="62696" type="ORGANIZATION" weightage="100" keywordseo="Scotland-Yard">Scotland Yard</keyword> said on Mallya’s arrest Officers from the Metropolitan Police’s Extradition Unit have this morning, Tuesday 18 April arrested a man on an extradition warrant. <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, 61 (18/12/1955), was arrested on behalf of the Indian authorities in relation to accusations of fraud. He was arrested after attending a central London police station, and will appear at Westminster Magistrates’ Court later today, 18 April.

This is what Scotland Yard said on Vijay Mallya’s arrest

<keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, who was arrested and then released on bail, did not have his extradition hearing on his mind. He was busy with something else. Hours before he was arrested by the London police, Mallya was excited about return of <keyword id="3142593" type="UNKNOWN" weightage="20" keywordseo="Alfonso-Celis">Alfonso Celis</keyword>, driver for Force India. Mallya is the team chief of <keyword id="801325" type="ORGANIZATION" weightage="20" keywordseo="Sahara-Force-India">Sahara Force India</keyword> and tweeted about how he was excited about the Bahrain test. 








 Hours after his arrest, Mallya was granted bail. Mallya, who is wanted in India over unpaid loans of around Rs 9,000 crore, appeared before the Westminster Magistrates Court. Mallya was arrested in relation to extradition request from the UK to India. He was arrested under the Mutual Legal Assistance Treaty by the London Metropolitan Police on behalf of Indian authorities on fraud accusations. Mallya, 61, fled to Britain in March 2016 after banks sued to recover about $1.4 billion that Indian authorities say <keyword id="6360137" type="CITY" weightage="20" keywordseo="kingfisher">Kingfisher</keyword> owes. Mallya's counsel told ETNow that he was granted bail and was already home. Mallya took to Twitter and said the appearance before court was slated

This is what Vijay Mallya was busy tweeting before his arrest

Indian government is set to face a stretched legal battle with the British courts before it can convince them for the <a href="http://www.businessinsider.in/india-asks-british-high-commission-for-extradition-of-vijay-mallya/articleshow/57064887.cms">extradition</a> of erstwhile liquor baron <a href="http://www.businessinsider.in/small-business/people/13-of-vijay-mallyas-properties-to-be-auctioned-including-his-palatial-mumbai-house/articleshow/57310868.cms">Vijay Mallya</a>. These court proceedings could last up to a year, even as the government prepares a strong defence of its case. Also read: <a href="http://www.businessinsider.in/breaking-news-vijay-mallya-arrested-in-london-to-be-extradited-soon/articleshow/58240032.cms">Breaking News: Vijay Mallya arrested in London; to be extradited soon</a>It’s for the first time that a special team of investigators, senior bureaucrats, lawyers and consultants has been created, especially to make sure that this extradition goes through well. "India will also rope in some Queen's Counsels (QCs). The government had already planned this and you will see the lawyers being finalised within the next few days," a person in the know told <a href="http://m.economictimes.com/news/politics-and-nation/india-to-press-before-uk-court-for-vijay-mallyas-extradition/articleshow/58243592.cms">ET</a>. However, it won’t be easy for the government to bring <a href="http://www.businessinsider.in/latest/ready-to-talk-one-time-settlement-says-vijay-mallya/articleshow/57576873.cms">Mallya</a> back.Also read: <a href="http://www.businessinsider.in/indian-authorities-have-no-grounds-to-extradite-me-i-wont-leave-britain-vijay-mallya/articleshow/57306002.cms">Indian authorities have no grounds to extradite me, I won’t leave Britain: Vijay Mallya</a>"It is going to be a long-drawn battle between the Indian government and <a href="http://www.businessinsider.in/small-business/people/vijay-mallya-reveals-faulty-pw-engines-led-to-kingfisher-airlines-collapse/articleshow/57446858.cms">Vijay Mallya</a>," said Zulfiquar M Memon, managing partner, MZM Legal. "Formal arrest and bail at the Westminster Magistrates' Court is just a formality to kick-start the process. The case for extradition will begin now, which will be contested till the end by Mallya's lawyers." In the past, India was unable to extradite music director Nadeem Saifee as well as former IPL chief <a href="http://www.businessinsider.in/sports/Sacked-IPL-commissioner-preparing-blueprint-of-breakaway-cricket-body-to-rival-ICC/articleshow/48424201.cms">Lalit Modi</a> from London, both of which cases saw involvement from MZM Legal.Also read: <a href="http://www.businessinsider.in/how-does-ipl-make-money-lets-find-it-here/articleshow/58111135.cms">How does IPL make money? Let's find it here</a>"Scotland Yard is involved in the arrest as the Indian police have no jurisdiction in the UK. The English courts will now decide on extradition, applying English laws and the extradition treaty with India. The Indian government will have to establish the case against him for extradition, but obviously, the actual criminal trial will be conducted in India," said Anand Desai, managing partner, DSK Legal.

It won’t be an easy task to get Mallya back from British Courts

<ul><li>The Ministry of Home Affairs has empowered the <keyword id="107956" type="ORGANIZATION" weightage="20" keywordseo="Serious-Fraud-Investigation-Office">Serious Fraud Investigation Office</keyword> (SFIO) to request the issuance of look-out-circulars (<keyword id="6355098" type="UNKNOWN" weightage="20" keywordseo="LoC">LOC</keyword>) against people who are suspected of defaulting on large loans. </li><li>Last week, the same power was also granted to the CEOs of India’s public-sector banks, which have largely been the major casualties of these frauds and loan defaults. </li><li>Prior to these changes, the ability to request for LOCs was mainly extended to police authorities, the CBI, Enforcement Directorate, the home and external affairs ministries as well as regional passport offices and customs and tax officials. </li></ul>In the wake of a series of high profile banking scams and loan defaults this year, the most notable of which is <a href="https://www.businessinsider.in/here-are-the-main-findings-from-punjab-national-banks-internal-investigation-into-the-2-billion-nirav-modi-scam/articleshow/64681851.cms">the Nirav Modi case</a>, the Indian government is trying to make it easier to prevent fraudsters from escaping the country and taking up residence elsewhere. To this effect, the Ministry of Home Affairs has empowered the Serious Fraud Investigation Office (SFIO), which is housed under the corporate affairs ministry, to request the issuance of <a href="https://indianexpress.com/article/india/centre-gives-sfio-powers-to-stop-defaulters-from-fleeing-the-country-5468015/">look-out-circulars </a>(LOC) against people who are suspected of defaulting on large loans. Last week, the same power was also granted to the<a href="https://www.livemint.com/Politics/lAjlD5SnzGYkS87SyKxVJI/Govt-authorises-public-sector-bank-CEOs-to-request-for-look.html"> CEOs of India’s public-sector banks</a>, which have largely been the major casualties of these frauds and loan defaults. However, as these public-sector banks aren’t official investigation agencies, the LOCs requested by them can be challenged in court. That is not the case with the SFIO. Prior to these changes, the ability to request for LOCs was mainly extended to police authorities, the CBI, Enforcement Directorate, the home and external affairs ministries as well as regional passport offices and customs and tax officials. A major reason why wilful defaulters like <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, <keyword id="571991" type="COMPANY" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword> and Mehul Choksi were able to flee India for safer havens was because the agencies or entities that caught wind of their crimes did not have the authority to prevent them from fleeing and had to follow protocols and notify higher powers with said authority. By the time formal channels of communication were activated, it was too late. This is reportedly what happened in the case of Vijay Mallya, who fled India in March 2016. The CBI actually <a href="https://www.hindustantimes.com/india/cbi-ignored-immigration-alert-on-mallya-leaving-india-on-march-2/story-hW83mkAc6qVe14VyFVOIFJ.html">watered-down the LOC</a> it had filed against the liquor baron in October 2015 from “detain” to “inform” after citing a lack of evidence and Mallya’s supposed intention to cooperate, which eventually allowed him to leave the country. The CBI had actually taken over the case from the SFIO, which had been looking into the diversion of funds at Mallya’s companies in September 2015. By broadening the number of stakeholders that can ask for the arrest of a <keyword id="2168141" type="PERSON" weightage="20" keywordseo="Wilful-defaulter">wilful defaulter</keyword>, the move could decrease the chances of this happening again in the future, especially in instances where investigations by the police and CBI are hamstrung by “conflicts of interest” or they don’t follow through with arrests. A few months ago, the central government also passed the <a href="https://www.businessinsider.in/india-takes-its-first-big-step-towards-avoiding-future-nirav-modi-vijay-mallya-like-scams/articleshow/65069668.cms">Fugitive Economic Offenders Act</a>. The law allows the Enforcement Directorate to seize the domestic as well as foreign assets of “economic offenders” who have left the country so their creditors may recover their dues. The crimes involve amounts of ₹1 billion or more. SEE ALSO: <a href="https://www.businessinsider.in/india-takes-its-first-big-step-towards-avoiding-future-nirav-modi-vijay-mallya-like-scams/articleshow/65069668.cms">India takes its first big step towards avoiding future Nirav Modi, Vijay Mallya-like scams</a> <a href="https://www.businessinsider.in/here-are-the-main-findings-from-punjab-national-banks-internal-investigation-into-the-2-billion-nirav-modi-scam/articleshow/64681851.cms">Here are the main findings from Punjab National Bank’s internal investigation into the $2 billion Nirav Modi scam</a> <a href="https://www.businessinsider.in/liquor-baron-vijay-mallya-will-be-the-first-to-be-tried-under-indias-new-fugitive-economic-offenders-ordinance/articleshow/64635569.cms">Liquor baron Vijay Mallya will be the first to be tried under India’s new Fugitive Economic Offenders Ordinance</a>

India’s corporate fraud investigation agency and the CEOs of state-owned banks can now directly prevent scamsters from leaving the country

The Indian government has formally asked the United Kingdom to deport <a href="http://www.ndtv.com/topic/Vijay-Mallya">Vijay Mallya</a>, the former Indian liquor baron who owes state-run banks over Rs 9000 crores of unpaid loans, but <a href="http://www.businessinsider.in/A-little-too-late-Mallya-flew-out-of-India-before-banks-could-take-a-stay-order-against-him/articleshow/51323634.cms">fled to London</a> on March 2nd. 
 
The 60-year old <a href="http://www.businessinsider.in/Vijay-Mallyas-personal-Airbus-jet-to-be-auctioned-to-recover-governments-dues/articleshow/51406790.cms">businessman</a> inherited a fortune from his father at the age of 28, and took it to new heights with his vision and successful brands like Kingfisher beer. As per reports, he would also be expelled from his <a href="http://www.businessinsider.in/Vijay-Mallya-asked-for-Rs-20000/articleshow/51943521.cms">post of a Member of Parliament</a> next week, after the government cancelled his passport a few days back. 
 "As of today, the ministry has written to the High Commission of the UK in Delhi requesting the deportation of Sri <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>," Foreign Ministry spokesman Vikas Swarup said, adding that the British authorities are yet to respond. 
 
The Supreme Court recently granted banks the access to <a href="http://www.businessinsider.in/Vijay-Mallya-foreign-assets/articleshow/51994174.cms">his foreign assets</a>, and an arrest <a href="http://www.businessinsider.in/Four-more-NBWs-against-Mallya-in-Hyderabad-court/articleshow/51412039.cms">warrant</a> has also been issued against him by a Mumbai court. 
 
<a href="https://d.ibtimes.co.uk/en/full/1497796/vijay-mallya.jpg">Image source</a>

India formally asks UK to deport Vijay Mallya

India’s banks can breathe a sigh of relief. On May 8th, a UK court upheld a decision by the <keyword id="6511712" type="ORGANIZATION" weightage="20" keywordseo="karnataka-debt-recovery-tribunal">Karnataka Debt Recovery Tribunal</keyword> regarding <keyword id="6360137" type="COMPANY" weightage="20" keywordseo="kingfisher">Kingfisher</keyword> tycoon <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>’s outstanding dues and maintained a worldwide freeze on his assets. The freeze will prevent Mallya from selling any assets in the England and Wales. Mallya is wanted in India for suspected fraud and money laundering. As a result, a consortium of 13 Indian banks - which includes the state-owned <keyword id="6354731" type="UNKNOWN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword>, IDBI Bank and Punjab National Bank - who extended loans to Mallya’s now-defunct Kingfisher Airlines will be able to to collect $1.55 billion worth of claims against his assets in the UK. The prosecution, which was representing the banks, successfully argued that Mallya “willfully defaulted” on the loans in spite of his considerable financial resources. The case reportedly marked the first time a ruling by an Indian tribunal had been registered in a UK court. Most importantly, it sets a precedent wherein a worldwide freeze can be imposed on a <keyword id="2168141" type="PERSON" weightage="20" keywordseo="Wilful-defaulter">wilful defaulter</keyword>’s assets. The ruling will also give the Indian government’s extradition proceedings against Mallya, which are expected to conclude in July 2018, a much-needed boost. To add insult the injury, the UK court has also barred Mallya’s legal team from appealing the ruling. If they wish to seek recourse, they will have no option but to directly petition the UK’s Court of Appeals. Mallya was <a href="https://www.nytimes.com/2017/04/18/business/vijay-mallya-extradition.html">arrested in April 2017 </a>on an extradition warrant over charges of defrauding his Indian creditors of $1.4 billion in loans. Currently out on bail, he has been absconding in England since March 2016 and refuses to come back to India over fears of an unfair trial. He has several cases pending against him in India over money laundering, tax evasion and credit defaults.

UK court allows Indian banks to collect claims worth $1.55 billion from tycoon Vijay Mallya

While on one hand Indian government is <a href="http://www.businessinsider.in/latest/getting-mallya-back-from-britain-a-long-legal-battle/articleshow/58256283.cms">trying hard</a> to extradite <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> from the UK, he was seen enjoying at the recently held India-Pakistan Champions Trophy match in Birmingham. Mallya has said that he plans to attend all future matches that India would play and cheer team India. "Wide sensational media coverage on my attendance at the India vs Pakistan match at Edgbaston. I intend to attend all games to cheer the India team," <a href="http://www.businessinsider.in/law-order/sc-holds-vijay-mallya-guilty-of-contempt-orders-him-to-appear-on-july-10/articleshow/58590374.cms">Mallya</a> tweeted today morning. Mallya also tweeted praises for skipper <keyword id="6354486" type="PERSON" weightage="100" keywordseo="Virat-Kohli">Virat Kohli</keyword>, who has also been the captain of his IPL franchise <keyword id="12643" type="ORGANIZATION" weightage="100" keywordseo="Royal-Challengers">Royal Challengers</keyword> Bangalore. "World class player World class Captain World class gentleman @imVkohli . Bravo Virat," he said on the microblogging platform. This, however, isn't the first time that Mallya has taken a jibe at Indian media as well as government agencies that have failed to get him back from UK to put him under trial for defaulting loans worth Rs 9000 crores that he owes to several Indian banks via his now defunct <keyword id="6373962" type="CITY" weightage="100" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword>. Also read: <a href="http://www.businessinsider.in/latest/sbi-expects-900-crore-hit-in-kingfisher-loans/articleshow/59014508.cms">Lost hopes! SBI expects to recover only part of Kingfisher loans</a> He was even <a href="http://www.businessinsider.in/law-order/this-is-what-scotland-yard-said-on-vijay-mallyas-arrest/articleshow/58242288.cms">arrested</a> by the British authorities in April but was <a href="http://www.businessinsider.in/small-business/people/breaking-news-vijay-mallya-appears-before-court-granted-bail/articleshow/58241422.cms">released on bail</a> within hours.

Will attend all matches and cheer for India all through Champions Trophy, says Vijay Mallya

Banks are now looking to recover a whopping sum of Rs 20,000 crore from debt-ridden textile company <keyword id="70578" type="COMPANY" weightage="20" keywordseo="Alok-Industries">Alok Industries</keyword>. 
 
The banks in India are looking to trace the use of loans. A forensic audit of Alok Industries will also be carried out by the lenders such as Grant Thornton and Chokshi &amp; Chokshi, led by State Bank of India. 
 A senior banker told ET that <keyword id="6358918" type="PERSON" weightage="40" keywordseo="Deloitte">Deloitte</keyword> had stepped down as Alok Industries’ auditor soon after <keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> officials held a meeting to discuss the financials of the textile firm. 
 
An employee of the PR firm hired by Deloitte told ET, "As per our consistent policy, Deloitte does not comment on client confidential matters." 
Surendra Jiwrajka, an executive director at Alok, told ET, "The reason for Deloitte's resignation was purely commercial in nature. The banks have never asked us for even a clarification thus far in this regard. There has never been any such mention in our accounts till date either. Besides, no auditor would take up the assignment if there were to be the existence of such a lacuna in the balance-sheet and even banks would not have supported us all the way they have so far."

Banks see another Vijay Mallya in Alok Industries, look to recover Rs 20,000 crore

The Calcutta High Court has granted a stay order to <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>’s defunct carrier Kingfisher on <keyword id="113653" type="COMPANY" weightage="20" keywordseo="United-Bank-of-India">United Bank of India</keyword> (UBI) decision to declare Vijay Mallya and three other directors as wilful defaulters. Earlier this month, the bank’s grievance redressal committee had declared the airline and its directors including the promoter as wilful defaulters 

	“We had earlier stated that we would legally challenge the wrongful decision of United Bank of India and that we have great faith in the judiciary in our Country. We will legally defend our position on all allegations going forward”, said Prakash Mirpuri, chief spokesperson of the airline in an email.
 

	The airline had earlier told BI India that it was planning to take legal recourse to challenge the wilful defaulter tag given by UBI. The carrier along with its current and erstwhile directors filed a writ petition in the high Court against the bank and others, in which it had challenged the ex-parte decision of the grievance redressal committee constituted by the declaring the petitioners wilful defaulters. 
 

	“The matter was listed for hearing on Friday, 26th September, 2014 before hon’ble Justice Debangsu Basak. After hearing Counsel for the Petitioners and the Bank, His Lordship passed an order in which his lordship has held that, prima facie, the Bank acted in breach of the principles of natural justice by not making over the documents referred to and relied upon by the Bank to KFA prior to the hearing, and thus, not enabling KFA to make an effective representation against the charges and allegations made against them in relation to being declared wilful defaulters,” added Mirpuri in the email. 
 

	The next hearing of the case will be held on 10th November while the bank has been asked to submit its affidavit in opposition by 3rd November. The airline is then expected to file its reply within a week of the affidavit.

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