INSUBCONTINENT EXCLUSIVE:
MUMBAI: Securities and Exchange Board of India (Sebi) has barred Vijay Mallya from accessing the securities market for three years and
holding any position as director or key managerial person of a listed company for five years for his involvement in fraud.
The ban starts
from the date of the order, the regulator said on Friday.
Sebi has also barred Ashok Capoor, former managing director of United Spirits
(USL), and P.A Murali, former executive director and chief financial officer of USL, for a period of one year each
Both former senior officials at USL have also been restrained from holding directorships and key managerial positions for one year in any
projections or false books of accounts, it is inevitable that Sebi should step in and take appropriate action against the entities
responsible for such misdeeds to maintain the integrity of the securities market as well as to protect the interests of the investors in the
follows: USL first gave trade receivables and advances to distributors and project related entities
These advances were disclosed as amounts provided for working capital requirement, enhancement of capacities, and lease deposits in the
books of accounts of United Spirits.
These funds were then transferred to UB Group companies under instructions from Mallya and other key
The distributors and project related entities (PRE) of United Spirits refused to return the advances to USL stating the reason that the
its report, PWC-UK stated that one of the distributors, Wave, said Mallya and Ashok Capoor permitted it to withhold payments due to USL
USL, an amount of ?224.08 crores was owed to USL by Wave Industries (Wave), as trade receivables from distributors
It is noted from records that Mallya had issued a letter dated January 5, 2012, authorizing Wave to withhold Rs 190 crores due to USL.The
same indicates that the trade receivables of USL from distributors were indirectly being used to fund the companies of the UB Group,"
Mahalingam said in the order.
