The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Urmanpreet Singh, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
There is an uncanny similarity between Sahara Group chief Subrata Roy and UB Group chairman Vijay Mallya. Both of them are in deep financial trouble, scraping the bottom of the barrel to put an end to the misery they have landed themselves in.
Sahara, who recently completed his second year in Tihar jail, is fighting hard to raise the bail money amount of Rs 10,000 crore. He reportedly deposited Rs 4,000 crore with market regulator Securities and Exchange Board of India, even as he put up his hotels in India and the US for sale to make up the balance.
Mallya is faced with a similar challenge, but of a relatively lesser magnitude. He asked for one-time settlement with the banks, with an offer to pay up Rs 4,000 crore of the Rs 9,000-crore Mallya (and his companies) owes the 17-member consortium of banks, by September 2016. This consortium led by the State Bank of India said it will examine this offer.
Just a day after a consortium of banks led by State Bank of India refused to accept a partial payback of a total of Rs 9,000 crore he owes to the banks, Vijay Mallya is one of the 500 Indian names found in the infamous ‘Panama Papers’.
Present Situation of Vijay Mallya:
The suspension of Vijay Mallya’s diplomatic passport by the Ministry of External Affairs, within a week of his failing for the third time to heed an Enforcement Directorate summons to appear in connection with a money laundering probe, is a prompt and appropriate step.
Some Important Points regarding Panama Leaks:
Panama Papers: The Panama Papers are set of leaked documents which show how law firm Mossack Fonseca helped clients launder money, dodge sanctions and evade tax with offshore accounts. However, offshore accounts do not by default indicate illegality. The investigation into the papers was carried out by the International Consortium of Investigative Journalists (ICIJ).The leak is said to be one of the biggest ever and shows links to 72 current or former heads of state in the data, including dictators accused of looting their own countries.
The group, a roster of the rich and famous, includes billionaire property baron Kushal Pal Singh, recipient of the Padma Bhushan, among India’s highest civilian awards, Vinod Adani, brother of billionaire Gautam Adani and billionaire real estate magnate Sameer Gehlaut. The list boasts a touch of Bollywood glamour with veteran actor Amitabh Bachchan and his daughterin-law Aishwarya Rai Bachchan, a former Miss World, featuring on it.
Sources: Times of india