Sebi bars Vijay Mallya, 6 others from securities market

New Delhi: Markets regulator Sebi on Wednesday barred Vijay Mallya, six others from the securities market in the United Spirits matter.

The six others are: Ashok Capoor, P A Murali, Sowmiyanarayanan, S N Prasad, Paramjit Singh Gill and Ainapur S R.

Sebi has also restrained Mallya and Ashok Capoor from holding directorship in any listed company.

In an order, Sebi has restrained Mallya and six others from the securities market and also from "buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly" till further directions.

Sebi has been looking into the matter pertaining to alleged fund diversions and improper transactions at United Spirits Ltd (USL). Mallya resigned as director and chairman of USL in March 2016.

The CBI on Tuesday submitted a detailed charge-sheet against absconding liquor baron Vijay Mallya and others in the Rs 1,300 crore loan default involving the defunct Kingfisher Airlines and IDBI. The 1,000-plus page charge-sheet has alleged the losses to the public sector bank by virtue of sanctioning loans to Mallya`s airlines without following proper procedures.

The loans of Rs 750 crore, Rs 200 crore and Rs 150 crore pertained to repayment of pending aircraft dues and party repayment of loans owed to another public sector bank.

It has said the airlines managed to secure the loans in collusion with IDBI officials and part of the loan was diverted for "personal uses".

The CBI has accused "omissions and commissions" on the part of the bank officials, including its former chairman Yogesh Agarwal, and said the loans were sanctioned despite poor credit ratings and falling financial health of the airline.

The CBI said that further investigations are on in the case and a non-bailable arrest warrant against Mallya has been issued which was in the process of being executed.

Besides, it has sent letters rogatory to Singapore and British Virgin Islands to find out the details of the bank accounts of Kingfisher Airlines in those countries.

The CBI also produced former IDBI chief Yogesh Agarwal, who was arrested from New Delhi on Monday, and others before the Special CBI Court and they were remanded to custody till February 7.

Seeking their custody, the CBI said they are influential persons who may flee the country like the "absconder accused" Mallya who had already fled, and may tamper with the evidences.

The CBI has invoked various sections of Indian Penal Code and Prevention of Corruption Act against all the accused, who have applied for bail.

With Agency Inputs