JOIN USIn mounting troubles for embattled Vijay Mallya, markets regulator Sebi has stepped up its probe into the fund diversion from his erstwhile listed group firms to other entities, including some abroad and his various sport ventures.
With the latest disclosures taking total suspected fund diversion at United Spirits alone to over Rs 2,500 crore, the Sebi is also referring to the matter for further action by other agencies including SFIO (Serious Fraud Investigation Office) under the Corporate Affairs Ministry, a top official said.
“We have taken note of the latest disclosure by the USL and have begun looking into suspected violation of various securities market regulations including those relating to related party transactions, corporate governance and diversion of funds by promoters and top management,” he said.
“Also under the scanner are Mallya’s close confidantes and others who were at senior levels at various listed companies of the group, as also some former auditors at certain group firms,” the official said.
Action is already underway for violation of listing agreement by some group companies, he added.
The matter of fund diversion would also need to be looked into by SFIO, while the Enforcement Directorate (ED) would also come into the picture as the funds are suspected to have been diverted to entities abroad, the official said, adding that necessary assistance would be sought from foreign regulators including in the UK and the US, where his overseas brewery firms and other ventures are based.
Mallya and his group firms are already facing a probe by the ED for alleged diversion of loans taken by long-grounded Kingfisher Airlines.