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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

A senior <keyword id="67881" type="General" weightage="80" keywordseo="idbi" source="Orion">IDBI</keyword> Bank official allegedly conspired with businessman <keyword id="14678" type="General" weightage="50" keywordseo="vijay-mallya" source="Orion">Vijay Mallya</keyword> for sanction and disbursement of a loan to the latter's <keyword id="6373962" type="General" weightage="80" keywordseo="kingfisher-airlines" source="Orion">Kingfisher Airlines</keyword>, the Central Bureau of Investigation said in its supplementary chargesheet filed in a Mumbai court. <keyword id="6373968" type="General" weightage="80" keywordseo="mallya" source="Orion">Mallya</keyword> is an accused in the alleged Rs 900-crore IDBI Bank-Kingfisher Airlines loan fraud case, which is being probed by the <keyword id="6354572" type="General" weightage="100" keywordseo="cbi" source="Orion">CBI</keyword>. The Central agency had recently filed a supplementary chargesheet before a special CBI court here. As per the chargesheet, former IDBI Bank general manager Buddhadev Dasgupta abused his position, conspired with colleagues and Mallya in the matter of sanction and disbursement of short-term loan (STL) of Rs 150 crore to Kingfisher Airlines in October 2009. Along with 11 accused named in the earlier chargesheets, the CBI has added the name of Dasgupta in the supplementary chargesheet filed recently. As per the CBI, the STL was requested for six months to meet certain critical obligations to overseas vendors, including aircraft lessors and other service providers. The said loan of Rs 150 crore, as envisaged originally by Dasgupta (by proposal circulated among credit committee members) was to be adjusted/repaid from the aggregate loan of Rs 750 crore originally sought by the airlines. However, after circulation, there was a change in the proposal to show as if the credit committee had treated this as a separate loan, which may (or may not) be adjusted/recovered from the aggregate loan, as per the CBI. While the exposure of IDBI Bank was to be restricted to the aggregate amount of Rs 750 crore, it rose to Rs 900 crore in December 2009 due to this STL being kept as a separate loan largely at the behest of Dasgupta, the charge sheet said. During the course of the investigation, Letter Rogatory (LRs) had been sent to the United Kingdom, Mauritius, USA and Switzerland as per the permission of the CBI court. Courts of one country seek the assistance of courts in another nation for the administration of justice there through LRs. The chargesheet also mentioned the evidence collected during a foreign investigation from these countries. "The properties at UK (Ladywalk in 2015-16 for GBP 12-13 million or Rs 80 crore) and France (Le Grand Jardin in 2008 for Euro 35 Million or Rs 250 crore approximately) were acquired by Mallya even as Kingfisher Airlines was facing severe cash crunch (2008)," the chargesheet said. Mallya was having adequate funds at his disposal between 2008 to 2016-17, but none of it was brought to support the airlines as equity infusion or to honour his obligations as a personal guarantor for the loans availed by KAL from IDBI and other banks in India, it added. The chargesheet, citing the evidence collected through LRs, said sizable amounts were transferred to Force India Formula 1 Team between 2008 to 2012. The chargesheet further said significant amounts were diverted between 2007 to 2012-13 to make payments towards the acquisition and repayment of the loan for a corporate jet used personally by Mallya. These acts on the part of Mallya clearly show he caused the diversion of funds for the corporate jet, Force India Formula One Racing Team, and other such extravagant expenses, and then wilfully defaulted on the loans availed by Kingfisher Airlines, the chargesheet stated. The aforesaid facts disclose the commission of offences like cheating and criminal conspiracy and others under Indian Penal Code and Prevention of Corruption Act provisions against Mallya, Dasgupta and other accused, as per the CBI. Apart from the CBI, the Enforcement Directorate is also probing a money laundering case against Mallya. On January 5, 2019, a special court here declared Mallya a 'fugitive' under the Fugitive Economic Offenders Act. Under the provisions of the Act, once a person is declared a fugitive economic offender, the prosecuting agency has the powers to confiscate his property. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-to-hike-prices-of-model-range-from-april/articleshow/98936536.cms">Maruti Suzuki to hike prices of model range from April</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/consumer-commission-orders-flipkart-retailer-to-pay-25000-compensation-for-sending-detergent-soap-instead-of-iphone/articleshow/98936522.cms">Consumer Commission orders Flipkart, retailer to pay ₹25,000 compensation for sending detergent soap instead of iPhone</a>

Former IDBI GM conspired with Vijay Mallya over short term loan to Kingfisher Airlines: CBI

<ul><li>Vijay Shekhar Sharma-led <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> today revealed that its average loan ticket size has surged by over 21% in the September quarter. </li><li>The company, whose shares are down by over two-thirds from its issue price of ₹2,150 since debuting in November last year, disbursed over 1 lakh loans every day during the quarter. </li><li>Reacting to the news, Paytm’s shares gained even as the broader markets were in the red on weak global cues. </li></ul>Paytm today reported a 21% quarterly growth in its average loan ticket size from ₹6,551 to ₹7,956 in the September quarter. It also disbursed over 1 lakh loans per day during the period, the company said in an exchange filing. The Vijay Shekhar Sharma-led company has reported that its pace of loan disbursals has increased from the previous quarter. At this rate, it would end up issuing loans worth ₹34,000 crore by the end of FY23, up from the ₹24,000 crore as estimated in the previous quarter. The surge in loan disbursals that Paytm is seeing should not come as a surprise. <a href="https://www.businessinsider.in/finance/banks/news/banks-to-reap-rewards-of-interest-rate-hikes-in-q2-earnings/articleshow/94706875.cms">Analysts have observed a strong growth in retail loans in the banking and financial services sector</a>. HDFC Bank, the largest private sector lender witnessed a 24% year-on-year growth in loans in its Q2 update, driven by corporate-rural, retail and wholesale segments. <div type="image" title="Paytm average loan ticket size Q2 FY22." msid="94753575" hostid="261" sizebytes="15012" caption="&amp;lt;p&amp;gt;Paytm average loan ticket size&amp;lt;/p&amp;gt;"></div> Paytm’s improved performance should come as a relief to the company’s investors, who have seen over two-thirds of their investment erode from the issue price since its listing in November last year. The company’s shares were up 0.9% as of 10:30 am today even as the <a href="https://www.businessinsider.in/stock-market/news/sensex-falls-642-points-as-us-jobs-data-drags-down-global-markets/articleshow/94752259.cms">benchmark Nifty50 index was down 1.2%</a>. Apart from this, Paytm also reported healthy growth in its offline payments business. The total devices deployed increased from 3.8 million in Q1 to 4.8 million in Q2. It is worth noting that this number includes the point-of-sales and soundbox devices only, not the dynamic QR codes that merchants can additionally deploy. Despite a healthy growth in devices deployed, the gross merchandise value, or GMV – which is essentially the value of total transactions carried out through these devices – registered a relatively slower growth. Sequentially, on a per user basis, the GMV was barely up, too, with an increase of a meager 0.7%, down from the 8.2% surge reported in the previous quarter. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/telecom-sector-to-ring-in-stability-in-q2-jio-and-airtel-expected-to-grow-stronger-vi-weaker/articleshow/94709309.cms">Telecom sector to ring in stability in Q2 – Jio and Airtel expected to grow stronger, Vi weaker</a> <a href="https://www.businessinsider.in/finance/banks/news/banks-to-reap-rewards-of-interest-rate-hikes-in-q2-earnings/articleshow/94706875.cms">Banks to reap rewards of interest rate hikes in Q2 earnings</a> <a href="https://www.businessinsider.in/stock-market/news/nifty50-valuations-remain-expensive-but-experts-are-divided-on-indias-growth-prospects/articleshow/94704195.cms">Nifty50 valuations remain expensive, but experts are divided on India's growth prospects</a>

Paytm reports an increase of over 21% in average loan ticket size

To ensure there’s no rerun of <keyword id="6373968" type="PERSON" weightage="20" keywordseo="mallya">Mallya</keyword> episodes in Indian banks, The Securities and Exchange Board of India (<keyword id="35210" type="UNKNOWN" weightage="100" keywordseo="Sebi">Sebi</keyword>) has mandated all listed companies to inform stock exchanges if they falter on loans. As per the new clause, the company would require to inform the stock exchanges within one working day of the default, according to an ET news report. Currently, listed companies require to disclose material events and information to stock exchanges. Companies make specific disclosures in instances such as delays and defaults in the payment of interest and principal on debt securities, listed non-convertible debentures, redeemable preference shares and foreign currency convertible bonds. To resolve the bad loan burden of the banks, the government and the central bank have started getting lenders to kick off insolvency proceedings against big defaulters. If a borrower is unable to pay on the due dates, according to the new Insolvency and Bankruptcy Code (IBC), the lending bank can initiate the insolvency resolution process on the next day. But the RBI mandates, banks can declare a borrower defaulter only after 90 days. This move by Sebi is significant because may a times, a defaulter makes payment just a few days before 90-day deadline to retain standard asset classification on their loans. Also the new clause would mean the borrower would have limited ability to raise further capital.

This is what Vijay Mallya has taught Sebi

The long list of assets owned by <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, who has been in news constantly since the past few days for <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" target="_BLANK￿￿￿￿">fleeing away from the country</a> even though he owes state-run banks some 9000 crore rupees, has not been able to avoid the Indian government’s hawk eyes. 
 
Apparently, the government is all set to auction off Vijay Mallya's assets, which include his personal Airbus ACJ 319, so that his service tax dues of Rs 812 crore can be recovered. 
 
Mallya’s other assets that are about to be auctioned include five smaller ATRs and three helicopters belonging to Mallya's <a href="http://www.businessinsider.in/Govt-Rejects-Vijay-Mallya-As-Kingfisher-Airlines-Director/articleshow/45345410.cms" target="_BLANK￿￿￿￿">Kingfisher Airlines</a>. 
 
Also read: <a href="http://www.businessinsider.in/VijayMallya-the-escapee-who-didnt-escape-apparently/articleshow/51344981.cms" target="_BLANK￿￿￿￿">Vijay Mallya - the escapee who didn't escape, apparently</a> 
 
"We are going ahead with the auction," a senior Central Board of Excise &amp; Customs (CBEC) official told ET. 
 
Even though the tax department wanted to arrest Mallya last year, it was rebuffed by a Mumbai metropolitan magistrate on the execution of a personal recognisance bond of Rs 50 lakh. Ecen then, the tax department had argued that Mallya could leave the country and had asked the court to ask him to surrender his passport, but that didn’t happen and as a result, <a href="http://www.businessinsider.in/Vijay-Mallyas-journey-from-a-businessman-to-a-fraudster/articleshow/51328653.cms" target="_BLANK￿￿￿￿">Mallya has fled the country</a>. 
 
The news has come just a day after <a href="http://www.businessinsider.in/Another-woe-for-Mallya-Hyderabad-court-issues-non-bailable-warrant/articleshow/51392100.cms" target="_BLANK￿￿￿￿">Hyderabad court had issued a non-bailable warrant</a> against Mallya after he failed to appear in court in connection to a lawsuit by GMR Hyderabad International Airport Ltd. 
 
<a href="https://upload.wikimedia.org/wikipedia/commons/5/54/Vijaymallya.jpg">Image source</a>

Vijay Mallya's personal Airbus jet to be auctioned to recover government’s dues

As per an internal report of India’s biggest lender, the <keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>), there is little hope left of recovering anything substantial from the <keyword id="6373962" type="CITY" weightage="100" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword>. The report says that SBI should expect a hit of about Rs 900 crore because of the bad debts in the grounded airlines.SBI leads a consortium of 14 banks that the Vijay Mallya-promoted airline owes money to and the loans are worth more than Rs 5,000 crore, excluding accrued interest, out of which SBI has a fund-based exposure of over Rs 1,200 crore. "It is the policy of the bank not to comment upon individual accounts and its treatment" an SBI spokesperson told <a href="http://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-now-expects-to-recover-only-part-of-kingfisher-dues-to-take-hit-of-rs-900-crore/articleshow/59008488.cms">ET</a>. As of now, <keyword id="6373968" type="PERSON" weightage="100" keywordseo="Mallya">Mallya</keyword> is in the UK and the Indian government has been fighting tooth and nail to extradite him, so that he can be put under trial for cases related to the airline's loan defaults. Mallya, however, has denied any wrongdoing.Banks now expect to recover about Rs 1,100 crore through the sale of pledged assets that are valued at Rs 1,565 crore, including Mallya's <keyword id="6360137" type="CITY" weightage="100" keywordseo="kingfisher">Kingfisher</keyword> villa in Goa. The villa was sold for Rs 73 crore in April as against the pegged market value of Rs 85 crore. "There are no takers for the Kingfisher Airlines brands which are valued (at) Rs 7-315 crore." a senior bank executive said. "Forget about brands, we have so far have struggled to sell even the real estate assets, such as <keyword id="861838" type="UNKNOWN" weightage="100" keywordseo="Kingfisher-House">Kingfisher House</keyword>, Mumbai."

Lost hopes! SBI expects to recover only part of Kingfisher loans

After two years of radio silence, liquor baron Vijay <keyword id="6373968" type="PERSON" weightage="20" keywordseo="mallya">Mallya</keyword> finally released a statement to the media via <a href="https://twitter.com/TheVijayMallya?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">his Twitter account</a> yesterday. In a five page letter, Mallya explained that he had filed a motion in the Karnataka High Court seeking permission to sell ₹139 billion worth of his assets to cover his outstanding dues with creditors. Mallya and his firms - the now defunct <keyword id="6360137" type="COMPANY" weightage="20" keywordseo="kingfisher">Kingfisher</keyword> Airlines and United Breweries - were declared wilful defaulters in late 2015. However, according to him, this designation came despite not one, but two, settlement proposals from his side. Also, he refuses to concede that the firms defaulted on their loans for any reasons other than “business failure”, when in reality, the government is pursuing fraud charges against him for money laundering and fund diversion. He currently owes a consortium of 17 state-owned banks around ₹99 billion, a bulk of which he says is “on account of interest”. Noting his disapproval at being made “the poster boy of bank default and lightning rod of public anger”, Mallya said that the overarching desire of government agencies wasn’t to collect evidence of criminal intent or allow him to cover his dues but rather to get him to India to face criminal charges. His extradition hearing in London is scheduled to end in late July. A pre-emptive plea The move comes a few days after the Enforcement Directorate (ED) initiated proceedings to declare Mallya a “fugitive economic offender” under a special ordinance and confiscate around ₹125 billion of his assets. This likely scared him into submission. Mallya concluded the letter by reiterating his desire to settle his dues with the public sector banks. However, other than asserting his desire to comply with the authorities, his plea is unlikely to change anything. He still has no desire to appear in court in India. Furthermore, his claims that he’s been trying to settle his dues since 2016 bear little credibility. Simply put, if he could pay back his loans in the last few years, he would have. This is the same person who threw a lavish 60th birthday party for himself merely weeks after Kingfisher Airlines defaulted on more than $1 billion worth of loans from the State Bank of India and had failed to pay its employees’ salaries. Offering to sell assets that are already slated for confiscation Most of the assets that Mallya has told the Karnataka High Court that he intends to sell are already on the chopping block, as notified by the ED. These include shares in firms like United Spirits and United Breweries, real estate properties like Kingfisher Villa and deposits with the court. Furthermore, Mallya is overestimating the value of his assets. For example, the Kingfisher Villa has been slated for sale for two years, but hasn’t been sold yet as buyers have steered clear. The reserve price has since fallen from around ₹850 million to ₹730 million. The ED has already moved a special court for permission to sell Mallya and his firms’ assets without a trial. A decision is expected within the next few months. In the meantime, if Mallya really wishes to shake off this “poster boy” image, he should come to India and face the charges in court.

Vijay Mallya wants to sell his assets to pay back loans, but it might be too little too late

The <keyword id="6357808" type="ORGANIZATION" weightage="100" keywordseo="Enforcement-Directorate">Enforcement Directorate</keyword> (ED) has said that former liquor baron <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, who fled India to avoid repaying millions of dollars of loan to Indian banks, had laundered more than Rs 1,300 crore using 13 shell companies in countries like US, Ireland, Mauritius and France. The latest indictment was made in the charge sheet that ED filed on June 14 in the <keyword id="6355008" type="UNKNOWN" weightage="100" keywordseo="money-laundering">money laundering</keyword> case that involves a loan of about Rs 900 crore from IDBI-KFA bank. Other than <keyword id="6373968" type="PERSON" weightage="100" keywordseo="Mallya">Mallya</keyword>, there are eight more people indicted in the 57-page long charge sheet for their alleged roles in the case. The charge sheet was filed under various sections of the Prevention of Money Laundering Act (PMLA) and was presented before a special anti-money laundering court in Mumbai. Mallya, who has been in the UK since March 2016, was arrested by Scotland Yard on April 18 this year, and India has been trying to extradite him from the UK for the loan fraud cases.

Vijay Mallya used 13 shell companies to launder over Rs 1,300 crore, says ED

<ul><li>Crowds chanted “chor hai, chor hai (you are a thief)” as they spotted Mallya at the match</li><li>A similar incident occurred in January 2017. </li><li> He owes as much as ₹90 billion to a clutch of banks, led by SBI. </li></ul>Long gone are the days when liquor baron <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> would walk into cricket stadiums as an IPL team owner, welcomed with cheers. The wanted businessman who has now fled India, was booed and heckled by crowds at The Oval as he watched the India-Australia match with his family, in the UK. Crowds chanted “chor hai, chor hai (you are a thief)” as they spotted Mallya at the match. This is not the first time when Mallya, who has fraud and money laundering charges against him in India, was heckled by crowds. A similar incident occurred in January 2017 to Mallya at The Oval stadium, to watch the Champions Trophy match between South Africa and West Indies. According to NDTV reports, crowds cried “chor, chor" (thief, thief)” at him. ‘Here to watch the match’ In a video from the World Cup match, Mallya was seen surrounded by a small crowd, pushing and shoving him, as the cries grew louder. At one point, someone even shouted, “Be a man, apologize to your country,” is heard, to which Mallya mumbled an inaudible response. “I am making sure my mother doesn’t get hurt. I am here to watch the game,” Mallya told news agency ANI, adding that preparations are underway for the next hearing scheduled in July. He has been fighting India's attempts to extradite him., and try him for his financial crimes. Mallya left India in 2016 before a lookout notice was issued against the former owner of Kingfisher Airlines. He owes as much as ₹90 billion to a clutch of banks, led by SBI. Mallya was at The Oval with his son, Siddharth Mallya, and posted a photo with him. 
	<div type="twitter" handle="TheVijayMallya" handlename="Vijay Mallya" image="http://pbs.twimg.com/profile_images/827708603/Copy_of_VJM_4_normal.JPG" favoritecount="13452" retweetcount="1024" status="Great to watch cricket with my son and even sweeter to see India’s emphatic victory over Australia. Congratulations… https://t.co/9EKOcl9RKt" createdat="1560103246000" id="1137781597653098497"></div>



In denial Mallya had repeatedly denied fleeing the country and said he is ready to pay back the money he owes to Indian banks. The London High Court will hear his oral plea against his extradition on July 2. Earlier, the High Court had rejected his plea against the extradition order by the UK Home Office and the Westminster Court. The Enforcement Directorate (ED) had also moved the Special Prevention of Money Laundering Act court last year to get them to declare Mallya declared a “fugitive economic offender”. This will allow them to confiscate his properties estimated to be worth ₹120 billion, making it the first such case of its kind, under the new law.

Vijay Mallya and family was heckled by Indian fans at The Oval in UK

Even though <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>'s <a href="http://www.businessinsider.in/Mallyas-Kingfisher-House-in-Mumbai-now-on-auction-by-SBI-for-more-than-Rs-150-crore/articleshow/51438555.cms">Kingfisher Airlines</a> carried a negative credit rating, it still managed to get a loan of Rs 950-crore from IDBI Bank in October-November 2009, and that too within 20 days of applying. 
 
People investigating the Mallya fiasco believe that there certainly was some "pressure from the top," otherwise the loan would not have been passed, adding that this matter will be looked into. Investigators from <a href="http://www.businessinsider.in/Vijay-Mallya-has-7-days-to-return-to-India-and-appear-before-the-ED/articleshow/51360074.cms">Enforcement Directorate</a> (ED) who have been questioning IDBI's ex-chief Yogesh Agarwal say that they "have reasons to believe there was political intervention for Mallya". 
 
<a href="http://www.businessinsider.in/Vijay-Mallyas-journey-from-a-businessman-to-a-fraudster/articleshow/51328653.cms">Mallya</a>, who has been asked to appear before <a href="http://www.businessinsider.in/Vijay-Mallya-wont-come-to-India-before-April/articleshow/51442851.cms">ED on 2nd April</a>, will be questioned about the political favours that he received when it came to his loan applications. IDBI's Mallya loan files will also be examined closely to see if any margin notes were made about this political intervention. 
 "IDBI Bank has sanctioned loans to <keyword id="6373962" type="CITY" weightage="100" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> following due process and prevailing guidelines. It may be mentioned that IDBI has fully cooperated with Central Bureau of Investigation and provided all clarification sought for in the matter," said the response of an IDBI Bank spokesperson. 
 
<a href="http://im.rediff.com/money/2016/mar/08mallya2.jpg">Image source</a>

ED smells ‘political pressure’ in IDBI’s 950 crore loan to Mallya

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

Former Indian liquor baron <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, who <a href="http://www.businessinsider.in/Vijay-Mallya-out-of-India-while-banks-seek-stay-order/articleshow/51323634.cms">fled India in March </a>and owes billions of dollars to Indian banks, has said that he is in a "forced exile" and would not return to India right now, because here, things are been thrown at him "fast and furious". 
 
Mallya, whose passport has been cancelled by the Indian government, said that he wants a "reasonable" settlement with creditor banks for the now defunct Kingfisher Airlines, but by taking his passport or arresting him, they won’t get any money. 
 
"I definitely would like to return to India. Right now, things are flying at me fast and furious. My passport has been revoked. I don't know what the government is going to do next," he told the Financial Times. 
 
The 60-year old says that he continues to be an Indian patriot, who is "proud to fly the Indian flag", but he feels safe in the UK and has no plans to leave that country amidst the outcries against him. 
 
"It is important to understand the environment in India today. The electronic media is playing a huge role not just in moulding public opinion, but in <a href="http://www.businessinsider.in/Vijay-Mallya-foreign-assets/articleshow/51994174.cms">inflaming the government</a> to a very large extent," he said in a four-hour interview in Mayfair, Central London. 
 
It was yesterday that the Indian government had formally asked the UK to <a href="http://www.businessinsider.in/Indian-wants-Vijay-Mallya-deported/articleshow/52027466.cms">deport Mallya</a>, who also has <a href="http://www.businessinsider.in/Four-more-NBWs-against-Mallya/articleshow/51412039.cms">several NBWs </a>against him. 
 
Mallya added that he was "absolutely not guilty of any of these preposterous charges of diverting funds from Kingfisher, buying <a href="http://www.businessinsider.in/Vijay-Mallyas-Airbus-to-be-auctioned/articleshow/51406790.cms">properties </a>or stuff like that". 
 
Also read: <a href="http://www.businessinsider.in/Vijay-Mallya-asked-for-Rs-20000/articleshow/51943521.cms">Rajya Sabha MP Vijay Mallya, a billionaire, had asked for Rs 20,000 as perks</a> 
 
He added that the government can appoint the world's best forensic auditor, but even he won’t find anything wrong in the accounts of Kingfisher as far as bank loans utilization is concerned. 
 
When asked who he thinks is behind his woes, he said, "I wish I knew," and "All I can say is the manner in which my passport was first suspended and then revoked was done in an extraordinary haste." 
 
"First, notice of suspension came on a public holiday last week... I replied. And my reply was not considered and the passport was revoked on Saturday," he concluded.

Cancelling my passport won’t get you back your money, cries Mallya

It seems it is the end of good times for liquor baron <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>. Mallya has been arrested by the Scotland Yard in London and is expected to be extradited to India. Mallya has refused to appear before courts even after repeated warnings over tax default cases. As per various reports, a CBI team will visit United Kingdom soon. Mallya fled to Britain in March 2016 and has been wanted in India for defaulting on loan payments to state-owned banks and allegedly misusing the funds. He owes banks at least Rs 9,000 crore. His financial dealings are being investigated by the CBI and federal Enforcement Directorate. In January, a court ordered a consortium of lenders to start the process of recovering the loans.

Breaking News: Vijay Mallya arrested in London; to be extradited soon

<keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, who is under immense pressure from Indian state-run banks to repay the loans worth Rs 9000 crores that he had taken for the now defunct Kingfisher Airlines, has stated that he wishes to honour his commitments, and has <a href="http://www.businessinsider.in/Vijay-Mallya-makes-another-attempt-this-time-he-is-offering-Rs-6000-crore-settlement/articleshow/51822342.cms">offered a new settlement</a> to the main lender SBI. In a United Breweries Ltd board meeting that he attended by a video-conference, he also stated that he hopes to make a quick progress on the matter. 
 
Enforcement Directorate of India is looking forward to <a href="http://www.businessinsider.in/UK-refuses-to-deport-debt-laden-Vijay-Mallya-money-lenders-grope-in-dark/articleshow/52217798.cms">extradite Mallya from the United Kingdom</a>, the country that he fled to, but in the meeting, he said that the chairman of UBL has the support of the board and strategic partner Heineken. 
 
Also read: <a href="http://www.businessinsider.in/Parliaments-Ethics-Committee-wants-to-expel-Vijay-Mallya/articleshow/52107381.cms">Expel Vijay Mallya, Parliament’s Ethics Committee says on receiving his resignation</a> 
 
"We expressed concerns over the various issues and Mallya has assured us that he is in serious negotiations with the banks to repay the loans as soon as possible. He has said he is willing to return to India to answer all questions but he has to be assured of his safety and freedom," said Kiran Mazumdar-Shaw, an independent board member. 
 
"Performance of the company has been extremely good and there is no corporate governance issue that has impacted it owing to Mallya," he added. 
 
Executives aware of the matter said that Heineken has chosen to stand by Vijay Mallya in his tough times. 
 
"Mallya told us he has been <a href="http://www.businessinsider.in/Vijay-Mallya-safe-in-UK/articleshow/52041381.cms">wrongly accused</a> and has every intent to repay loans," said Sunil Alagh, also an independent board member. "For now, the board stands by him and sees no corporate governance issues and would monitor progress until the next (board) meeting in August." 
 
Mallya told the board he had been wrongly accused of money laundering and there was no evidence to justify the allegations. He said he was willing to return immediately if he was assured of<a href="http://www.businessinsider.in/SC-says-Vijay-Mallya-will-have-to-declare-all-his-assets-to-the-Banks-including-that-of-his-wifes-and-childrens/articleshow/51994174.cms"> safe passage</a>. "We all unanimously expressed our concerns to Mr Mallya and he told us that he is making serious efforts to repay the banks," said CY Pal, independent board member. 
 
"He also told us he had tried to repay Kingfisher Airlines' employee dues through United Breweries Holdings but was delayed since the Karnataka High Court has frozen accounts and assets." He expressed his keenness to return to India if safe passage was assured, Pal added. 
 
<a href="http://www.newsx.com/sites/default/files/field/image/Vijay-Mallya-Net-Worth.jpg">Image source</a>

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