Few months back we reported how a business baron who owed banks thousands of crores of rupees could leave the country as a defaulter in spite of court proceedings under way, a consortium of 17 banks asking for his passport to be impounded, and former Kingfisher employees demanding their salaries pending for months? More importantly, if it was just a case of a failed business why would he flee and take refuge only in London, known for providing high-profile foreign offenders with considerable wealth an asylum and a safe place to park their assets and enjoy a peaceful life, away from the laws of their home countries? With such a group of wanted and vulnerable criminals at hand is it a far-fetched scenario if such Oligarchs and even in many cases terrorists are used for inciting revolution in India or even orchestrating elections, when we already know they have done so in the past? With new information coming to light this may not seem a far-fetched scenario at all.
Recently State Bank of India-led consortium of 17 banks urged the court to issue arrest warrants against Mallya. In a written affidavit filed by SBI-led consortium accessed by BloombergQuint they said:
Mallya has not denied the existence of his bank account held in Edmond de Rothschild Bank, Geneva. However, details of his bank account are not mentioned in the list of foreign assets. This is an act of wilful concealment.
The banks submitted that Diageo itself had on February 28 apprised the Debt Recovery Tribunal about the payment on February 25. They submitted that Diageo’s memo before the tribunal traces the payment to an account maintained by Mr. Mallya with Edmond De Rothschild (Suisse) SA in Geneva. However, the disclosure statement filed by Mr. Mallya of assets in his possession as on March 31 does not reflect this transaction of USD 40 million.
Now this is not just any normal bank account and what it holds is more than money.
Captain Gopinath also known as the father of low cost air travel in India and the founder of Air Deccan had roped in the Rothschilds to raise funding for his venture as he explains in his book Simply Fly : A Deccan Odyssey. In 2004 Captain Gopinath roped in N M Rothschild as consultants to help it in raising $50-60 million. In 2007, Kingfisher Airlines acquired Air Deccan, changed its name to Simplifly Deccan and subsequently converted it to Kingfisher Red. However, after acquiring Air Deccan, Kingfisher suffered a loss of over US$150 million for three consecutive years. By early 2012, the airline accumulated losses of over US$1.0 billion with half of its fleet grounded and several members of its staff going on strike.
The thing is Air Deccan was already making losses even before Mallya bought it. In the book The Vijay Mallya Story, K. Giriprakash says Vijay Mallya bought Air Deccan with his eyes closed. His team never went through the books of the loss making Air Deccan before Mallya agreed to buy it for a total consideration of Rs 1000 crore in 2007. Many believe this was the deal that brought down his empire; courtesy of N M Rothschild consultants.
In 2011, hounded by creditors and a depleted fleet of aircrafts Mallya too sought help from the Rothschild. In 2012 a $2 billion deal is struck with Diageo, the world’s largest spirits company. Part of this payment was received in offshore accounts. According to banking sources, since most of the transaction proceeds were in overseas accounts, it was not possible for them to seize them. Needless to say the money was not used to repay loans to Indian banks in 2012 which lent Rs 7,200 crore to Mallya-owned Kingfisher Airlines. Later a sweetheart exit deal was brokered between Mallya and Diageo where $75 million were paid to Vijay Mallya to step down as chairman of United Spirits.
But here is the most interesting part. Mallya’s three-storey mansion called Ladywalk in the village of Tewin in Hertfordshire, just over a one-hour drive north of London where he has been living since he fled was also financed by the Rothschilds. The 11.5-million-pound mansion was bought from the father of British Formula One champion Lewis Hamilton by a company with offshore links. Official documents list the owner of Ladywalk as a limited liability partnership called Ladywalk LLP. It has two members, including a company called Continental Administration Services, which is registered in St. Kitts and Nevis, a Commonwealth country in the Caribbean regarded as a tax haven. A loan to finance the property purchase in July 2015 was made by the Edmond de Rothschild private bank in Switzerland. Official papers name the borrower as Ladywalk Investments, a company incorporated in the British Virgin Islands, another tax haven.
ET NOW has accessed the confidential settlement document and has summarized the key points below.
DEVIL IN DETAIL
- Settlement doesn’t apply if Mallya or his cos benefited personally from co funds Settlement terms not applicable in case of fraud
- $75 MILLION PAYMENT $40 mn on day of agreement i.e 25th Feb, 2016 $7 mn on each anniversary of agreement over 5 years
- MALLYA’S SWISS ACCOUNT TRAIL Amount to be transferred to JP Morgan New York Amount to be credited to Swiss bank Edmond De Rothschild
- BREAK UP FROM USL Mallya & his affiliate cos lose all rights to United Spirits Barred from taking any board role, damage reputation
- CLAUSE NOT TO SUE Diageo & Mallya agree they won’t sue each other post deal Settlement under jurisdiction of England & Wales
This deal was made even as investigations were on into Mallya’s financial dealings. According to some reports Mallya fled the country with this $40 million that he received in February this year. Now that Diageo controls India’s largest distiller questions are being raised in its dealings as well. However, no questions are being raised on the Rothschilds who facilitated the whole dubious deal and fooled an entire country with their trickery. Acquiring 350 more shares Rothschild now owns a 12.8% stake of around worth $347,000 in Diageo Plc. What this means is that Rothschild now owns Kingfisher Airlines and Air Deccan both by virtue of their holding companies.
For those of you who do not know, this Rothschild Banking Family is one of the same families that owned the East India Company. With the gold that was looted from the colonies, mostly from India and China this Rothschild family laid the foundations of their modern banking empire – only now they loot in a sophisticated, structured and legal manner.
Last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at Rothschild & Co., gave a talk on how the world’s wealthy elite can avoid paying taxes. His message was clear: You can help your clients move their fortunes to the United States, free of taxes and hidden from their governments. Some are calling it the new Switzerland.
But there is more at stake here in this amazing scheme of tax fraud, money laundering and dubious deals (read loot). While consulting Mallya, Rothschild India MD spelled it out.
“I am surprised that the airline is still afloat. It needs serious restructuring and cash. They are pinning their survival on FDI but who will put money in a near-bankrupt airline?” financial advisory group Rothschild (India) MD Amitabh Malhotra said. He thinks allowing foreign carriers to pick up stake in Indian airlines is a long-term solution and will broadly improve sentiment, whenever allowed. “But at the moment, there are only a handful of airlines with enough money to invest and I think there is limited appetite for India as of now, given the operating environment,” added Malhotra.
Now that Rothschild have Air Deccan and Kingfisher in its pocket the environment seems to be getting better for the long-term solution as well. The government is looking to dilute the rule which makes it mandatory for an Indian carrier to be controlled and owned by an Indian or an Indian entity. As per latest liberalised FDI policy, while foreign airlines can’t directly own more than 49 per cent in Indian airlines, their group companies or investors can fully own airlines in India with government approval. The landmark FDI announcement allows 100% investment by foreign entities in Indian carriers.
Azim Premji is among the four shortlisted bidders to buy controlling shares in a Kerala based private healthcare chain KIMS Hospitals in a deal estimated at around $220 million (around Rs 1,400 crore). KIMS operates 2,000 beds through a network of hospitals in the Middle East and southern India. Mr. 5% N M Rothschild is advising the existing foreign investors -Orbimed and Ascent Capital -on a secondary sale of shares, besides a fairly large primary capital infusion into the company.
Former Zee Group CEO is planning to raise around three-five million USD to expand the services of its startup Zonnett; one of the investors include the House of Rothschild.
However, their landmark deal was in 2010 when they were the advisors to Government of India for the auction of 3G & BWA spectrum, a US$2.27 billion deal, in which they got atleast Rs 30.5 crore in commission. How much was the tax payer’s loss in the resulting 2G spectrum scam and where the money ended up is anybodys guess. What is baffling is that even the Government of India hires these owners of East India Company as their financial advisors.
These are just some examples we are mentioning here due to space constraints. We suggest our readers to track other deals which are going on as we speak. Now, these deals are not some random deals but are part of a very carefully hatched ‘development plan’.
Why is it that everytime a major scam is unearthed apart from the politicians, officials, corporates the links all end up in UAE? Is it not true that still massive infrastructure projects are awarded to Dubai based companies at more than 400% market rates? Is it also not true that these companies than subcontract these same projects to Indian companies at dirt cheap rates? Isnt that exactly what happened in the CWG scam? Is it not true that even the FDI monies are routed into India through Dubai from the tax havens? Is it also not true that the major beneficiary of these scams is a company called Emmar owned by the Rothschilds – the owners of the East India Company? Don’t our Indian politicians know or even understand this? What about our intelligence agencies?
As explained in detail in our Foreign Countries Dictating India Series, after the collapse of the US economy in 2008, the Dubai Economic Miracle experiment was hatched to get rid of the Dubai FLU via Foreign Direct Investment in India routed through the tax-havens; whereby the Nathan Mayer Rothschild Group was able to suck money out of India to bail the UAE economy out. With incredible amusement, the western world watched Indian State Governments and the Union (Indian) Government succumb silently, one after the other, to NMR Group and Emmar Properties, Dubai, all falling for a single catch phrase: ‘FDI is development and will create (temporary) jobs’. What is more surprising is that still 90% of Indians do not even know that this very House of Rothschild was one of the families that controlled the East India Company that looted India in the first place and wants to ‘Develop India’ now. When they came by the seas they brought with them a very unique weapon of enslavement – it was called Free Trade in those days. Later they called it Liberalisation and Privatisation than it was called Globalisation. Now they have come again with the same weapon of enslavement but with a new fancy name – FDI.
Incredibly N.M. Rothschild & Brothers (NMR) are found to be the consultants for all those FIIs who wanted to invest in Indian FDI and their partners in India, Mr. 5%, as they are always known. But the real question here is with no money to invest and with Western and European governments wanting every last dollar to save their domestic economies, where does the money for FDI in all these deals come from?
Read GreatGameIndia’s exclusive Foreign Countries Dictating India Series to know exactly how this works in the international arena. A bizarre Saga of bankrupt western economies and their multinational business houses’ incredulous and laughable economic plan to ‘Develop India’.
Shelley Kasli for GreatGameIndia – India’s only quarterly magazine on Geopolitics & International Relations. Published in Jul-Sept 2016 issue as The Hidden Hand Behind The Kingfisher Deal.
The Jul-Sept 2016 issue of GreatGameIndia Magazine is dedicated exclusively for the understanding of how international markets work and how exactly it impacts Indian Rupee, published as a special #FinancialWarfare issue. Subscribe Now and help keep our research going.Subscribe Now
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