Double whammy for Vijay Mallya: ED files case, DRT blocks $75 million in Diageo deal

March 8, 2016

Mumbai/New Delhi/Bengaluru, Mar 8: In a double blow to beleaguered business tycoon Vijay Mallya on Monday, the Enforcement Directorate (ED) in Mumbai lodged a money laundering case and the Debt Recovery Tribunal (DRT) in Bengaluru barred British liquor giant Diageo from paying him anything till a case against him was disposed off.

vijaymallyaThe tribunal barred Diageo plc from paying Rs 5.04 billion ($75 million) as a severance package to Mallya who quit the chairmanship of its Indian company, United Spirits Ltd. last month, till the pending case against the liquor baron before it is decided.

"The presiding officer of DRT (R. Benkanahalli) ordered temporary attachment of the severance package amount and directed Diageo not to pay it till our case is finally heard and disposed of," counsel for State Bank of India (SBI) told media persons in Bengaluru.

Reading out the one-page order, Benkanahalli said Mallya shall not temporarily draw the $75 million mentioned in the interlocutory application till the case`s disposal.

"Diageo plc and United Spirits Ltd shall not disburse the amount ($75 million) to Mallya or his nominees or agents till the disposal of the bank`s original application (OA). Amount as sought by the applicant banks stands attached," the order said.

The tribunal also directed all defendants to furnish details of the agreement on or before the next date of hearing (March 28), when it will hear the bank`s three other interlocutory applications, seeking his arrest, impounding of his passport and seizure of his assets.

It also ordered issuing notice on the bank`s application to Diageo office in London through registered post.

A consortium of 17 state-run and private banks led by SBI filed the application on February 26, a day after Diageo signed the deal with Mallya for resigning as chairman and not competing with it in the spirits business worldwide for the next five years for $40 million this year and the balance ($35 million) over the next four years.

According to the SBI counsel, Mallya`s now defunct Kingfisher Airline owes the consortium a whopping Rs.10,000 crore, including compound interest over the remaining combined loans of Rs.7,800 crore borrowed between 2004-12 before it was grounded and shut down subsequently.

In another major blow for Mallya, the ED on Monday registered a money-laundering case against him.

"We have filed a case against Mallya on Monday. The case is specifically based on the case registered by the CBI against him and others in (October) 2015," Assistant Director (Enforcement Directorate) A.K. Rawal said in New Delhi.

Mallya and the top executives of the erstwhile KFA have been booked under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA), Rawal said.

The measure follows an audit of the Rs 7,200 crore loan that the bank consortium had extended to the airline but was not repaid.

The KFA is alleged to have diverted as much as Rs.4,000 crore of that money to international tax havens like Mauritius and Cayman Islands, which is being probed by the ED and the Central Bureau of Investigation (CBI).

Other businesses of Mallya were also being scrutinized by the ED under the PMLA, an official, requesting anonymity, told IANS in Mumbai.

It is feared that Mallya might become a fugitive from law by shifting base to a country where it might be difficult to make him face the Indian laws, officials said.

The flamboyant businessman, who recently announced his plans to spend more time with his family in Britain, has refuted all charges against him and taken exception to being labelled as a "wilful defaulter" by some of the lender banks.

Mallya has also denied he was planning to flee the country and said he was ready to cooperate with the lenders and the agencies to settle the debt.

Though the consortium of lenders moved the tribunal in 2013 for recovery of their outstanding loans, Mallya`s dramatic announcement that he would move to London forced the banks to lay first claim on the deal amount and rush to the tribunal for early hearing of its case.

Perceived as the `King of Good Times`, Mallya was recently in the news when some former airlineemployees wrote an open letter, blaming him for the grounding of the airline and damaging the country`s reputation in the aviation industry.

Once reputed as the most glamorous and luxurious private airline in the country, KFA fell into bad days and was grounded in October 2012 after a huge financial mess, including default of bank loans, dues to oil companies, airports and even staff salaries.

Comments

Rikaz
 - 
Tuesday, 8 Mar 2016

No matter what, he should not have stopped paying for his employees...it is their curse...that brought him to this stage....

karan
 - 
Tuesday, 8 Mar 2016

this same SBI bank and other bank need all the document and everything if poor guy have they will not provide even 20,000 of loan, and here mally did wonderful job, dont pay even one rupee to them all this bank eaten poor people's money.

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News Network
April 4,2020

Mumbai, Apr 4: As many as six Central Industrial Security Force (CISF) personnel stationed at Mumbai airport in Maharashtra have tested positive for coronavirus, taking the total number of positive cases among the central force to 11. The first case of a CISF jawan being diagnosed with the viral disease was reported on March 28. 

After the first case, the armed police force reported four more cases of COVID-19 among the personnel stationed at the airport on Thursday. On the same day, the CISF collected samples of 146 staff and sent them to Kasturba hospital for testing. The results, which arrived on Friday, recorded six more COVID-19 cases among, reported news agency.

The personnel were posted at Kharghar adjoining Mumbai, a senior official told news agency.

As of now, there are 14 COVID-19 cases in Panvel Municipal Corporation (PMC) area in Mumbai. Kharghar comes under the civic body's jurisdiction.

All the 146 CISF personnel were shifted to a quarantine centre at a facility at Kamothe reported the Times of India.

Maharashtra reported 67 new COVID-19 cases, taking the total tally to 490. A total of 26 deaths have been reported in the state.  

In the meantime, the Centre on Friday said there is no shortage of medical supplies across the country to fight COVID-19 outbreak.

"The government of India is making sure that all the essential medical supplies are in place to fight COVID-19. Sixty-two lifeline Udan flights transported over 15.4 tons of essential medical supplies in the last five days," Union Minister for Chemical and Fertilisers DV Sadanada Gowda said in a tweet.

The government is also paying full attention to the manufacturing activities of essential items like pharmaceuticals and hospital devices. For this, over 200 units in Special Economic Zones (SEZs)  are operational, he added.

"A Central Control Room has also been set up for close monitoring of the distribution of essential medical items and to address logistic related issues," Gowda said.

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Agencies
July 8,2020

New Delhi, Jul 8: India has reported a spike of 22,752 COVID-19 cases in the last 24 hours, taking the country's coronavirus tally to 7,42,417 on Wednesday, informed the Union Ministry of Health and Family Welfare.

Out of the total cases reported, 4,56,830 patients have been cured/discharged from the disease while one patient has been migrated, the Health Ministry informed.

It added that there are 2,64,944 active cases in the country.

482 deaths reported in the last 24 hours due to COVID-19 in the country, taking India's death toll to 20,642.

According to the Union Health Ministry, Maharashtra continues to be the worst affected state reporting 2,17,121 coronavirus cases and 9,250 fatalities.

Tamil Nadu -- the second worst-affected state from COVID-19 -- has a total of 1,18,594 cases and 1,636 deaths due to coronavirus.

While Delhi has a total of 1,02,831 COVID-19 cases including 3,165 deaths.

The Indian Council of Medical Research on Wednesday informed that a total of 1,04,73,771 samples tested for COVID-19 up to July 7. Of these, 2,62,679 samples were tested on Tuesday.

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News Network
May 15,2020

New Delhi, May 15: A group of doctors from the AIIMS, Raipur has recommended restrictions on the use of mobile phones in healthcare institutions amid the COVID-19 pandemic, warning that such devices can be a potential carrier of the virus and lead to infection among healthcare workers.

In a commentary published in the BMJ Global Health journal, the doctors stated that mobile phone surfaces are a peculiar 'high-risk' surface, which can directly come in contact with the face or mouth, even if hands are properly washed and one study indicates that some healthcare workers use phones every 15 minutes to two hours.

Though there have been many significant guidelines from various health organisations like the WHO and CDC focusing on prevention and control of disease, the commentary highlighted "there is no mention of or focus on mobile phones in these guidelines, including the WHO infection control and prevention guidelines, which recommends the use of handwashing".

In healthcare facilities, phones are used to communicate with other health care workers, look up recent medical guidelines, research drug interactions, understand adverse events and side effects, conduct telemedicine appointments and track patients among others, stated the document.

The document has been authored by Dr Vineet Kumar Pathak, Dr Sunil Kumar Panigrahi, Dr M Mohan Kumar, Dr Utsav Raj and Dr Karpaga Priya P from the Department of Community and Family Medicine.

"In their tendency to come in direct contact with the face, nose or eyes in healthcare settings, mobile phones are perhaps second only to masks, caps or goggles," the authors said.

"However, they are neither disposable nor washable like these other three, thus warranting disinfection. Mobile phones can effectively negate hand hygiene... There is growing evidence that mobile phones are a potential vector for pathogenic organisms," they said.

It is the need of the hour to address proper hygienic use of mobile phones in healthcare settings. In a study in India, almost 100 per cent of health workers of a tertiary care hospital used mobile phones in the hospital, but only 10 per cent of them had at any time wiped their mobile phones clean, the commentary published on April 22 said.

"The safest thing to do is to consider your phone as an extension of your hand, so remember you are transferring whatever is on your phone to your hand," Dr Pathak said.

Amidst the ongoing pandemic, two biggest mobile phone companies have uploaded their user support guidelines, saying that 70 pc isopropyl alcohol or Clorox Disinfecting Wipes can be used to gently wipe the exterior surface of phones in switched-off mode.

However, in doing so, the use of bleach or entry of moisture through any of the openings must be avoided, and any harsh chemical may damage the oleophobic screen, leading to damage in the touch screen sensitivity of the phone, the article stated.

Mobile phones are one of the most highly touched surfaces according to the Centers for Disease Control and Prevention (CDC), along with counters, tabletops, doorknobs, bathroom fixtures, toilets, keyboards, tablets and bedside tables.

The doctors recommended restriction on mobile phone usage in healthcare settings like hospital wards, ICUs and operation theatres, while advocating the use of headphones to prevent contact with the face while talking.

There should be no sharing of mobile phones, headphones or headsets of any kind. In addition, where available, the use of interdepartmental intercom facility may be promoted.

"Although hand hygiene and mobile phone use by a person are not mutually exclusive, it is high time to acknowledge the potential role of mobile phones in disease transmission cascade and to take evidence-based appropriate actions. This is especially important, given the ongoing COVID-19 pandemic," the authors said.

They said it is necessary for government agencies and the WHO to generate public awareness and to formulate suitable information, education and communication material on mobile phone hygiene, especially in healthcare settings.

AIIMS, New Delhi, Resident Doctors' Association (RDA) General Secretary, Dr Srinivas Rajkumar T said even outside health care settings, people should pay special attention to the usage of mobile phones as they carry them to all places.

"Phone and computer peripherals like keyboard, mouse, etc. should be covered with transparent plastic covers which can be cleaned without interfering with their function. Cleaning hands by soap or alcohol-based hand sanitizer before and after contact with phone and between contact with other surfaces can decrease the risk of potential transmission.

"Using a handsfree headset, dedicated operator/assistant per ward handling the communication via common line in hospitals while on duty can enable communication without compromising safety," Dr Srinivas said.

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