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Panama Papers: Mallya linked to firm in Virgin Islands

He has been declared a willful defaulter by banks in India,

Policy Pulse
Publish Date: Apr 8 2016 12:16PM | Updated Date: Apr 8 2016 12:16PM

Panama Papers: Mallya linked to firm in Virgin Islands

 Businessman Vijay Mallya, who has been declared a willful defaulter by banks in India, figures in the offshore leaks by International Consortium of Investigative Journalists (ICIJ), whose Panama Papers have been most talked about subject across globe in last couple of days.

 
According to ‘The Times of India’, details in ICIJ website showed a British Virgin Islands firm - Venture New Holding Limited is linked directly to Vijay Mallya, and not to any of his companies.
 
Tax haven entities of Mallya, , have been in focus after the paper reported the Karnataka high court observations in January 2014 that "Mallya had not come to the court with clean hands" in connection to a possible diversion of Rs 4,000 crore to a subsidiary in British Virgin Islands.
 
Mention in latest offshore leaks comes even as state-owned banks are trying to recover more than Rs 9,000 crore of unpaid loans from Mallya.
 
His offshore is directly connected to a firm named Porticullus Trust Net, which, according to ICIJ, is a 'one-stop solution' for the setting up of offshore accounts.
 
Porticullus Trust Net has its origins in Cook Islands – a group in South Pacific. And, protecting Mallya's identity until the leaks was Sharecorp Limited, which operated as a nominee shareholder.
 
Experts point out that nominee shareholders are third-party firms not related to the client operating the offshore firm and are introduced to uphold client secrecy. 
Usually, there is a legal document dealing with numerous transaction treaties, among other arrangements, between the firms, all kept confidential.