Rajat Gupta, former Goldman Sachs Director and a one-time poster boy of Indians in the US, has begun his two-year jail term for insider trading while losing his appeal against paying nearly $14 million in civil penalties and ban on serving as a public company officer.

India-born Gupta, 65, will now have to pay $13.9 million as penalty in the US Securities and Exchange Commission's parallel insider trading case against him, in addition to the $5 million fine in the criminal case and $6.2 million restitution to Goldman Sachs.

A three-judge bench of the US Court of Appeals for the 2nd Circuit yesterday denied Gupta's plea to overturn the decision of the district court that had imposed a permanent injunction prohibiting the former McKinsey head from serving as an officer or director of a public company, associating with brokers, dealers or investment advisors, and further violating securities law.