The Curious Case of Vinay Rai, the Vijay Mallya of a decade ago

The names of Usha Ispat and Malvika Steel, promoted by Vinay and Anil Rai have figured among the top 10 defaulters on what is called Reserve Bank of India (RBI)’s defaulters’ list, published by news portal The report says, Usha Ispat had been getting loans and defaulting on them for more than a decade despite raids by Central Bureau of Investigation (CBI), first information reports (FIRs) and the Serious Fraud Investigation Office (SFIO) initiating proceedings against the company promoters. But while Vijay Mallya is under tremendous scrutiny, Vinay Rai had reinvented himself. From a defaulter of mega steel projects he became an educationist but that venture also turned extremely controversial.

Vinay Rai, the promoter of Usha Ispat and Malvika Steel was reportedly close to Rajiv Gandhi and had managed to do a mega public issue of shares in 1989 that almost flopped. His steel venture in Gopalganj, Uttar Pradesh did not take off. He quietly went out of the limelight. But Rai, a Sathya Sai Baba devotee reinvented himself as an educationist. His website now describes himself as “A philosopher. A philanthropist. A visionary. An educationist.” His Ahmedabad-based Rai University is established by Gujarat State Legislature under Gujarat Act No12 of 2012.

The report from Newslaundry, says, Usha Ispat has defaults of Rs16,911 crore. However, “only Rs 5,093 crore of Usha Ispat’s total defaults are labelled as wilful according to the RBI’s list. Usha Ispat owes more than half of the total default sum to Life Insurance Corp of India (LIC) at Rs8,619 crore,” the report says.(News Courtesy: MoneyLife)

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