home Business Mallaya quits as United Spirits chairman, in exchange for $75 million

Mallaya quits as United Spirits chairman, in exchange for $75 million

On Thursday, 25th Feb, the Liquor baron Vijay Mallya has resigned as the chairman of United Spirits Ltd, controlled by Diageo Plc, in a $75-million (Rs 515 crore) deal with the UK firm. And in return, Diageo, has agreed to drop all charges of alleged irregularities under his watch.

Diageo announced MK Sharma, an independent non-executive director and chairman of the audit committee, would be the new chairman.

The 60-year-old Mallya said he would be moving to England to be closer to his children and would exit the company as Founder Emeritus of United Spirits.

“The time has now come for me to move on and end all the publicised allegations and uncertainties about my relationship with Diageo and United Spirits Limited,” Mallya’s statement read. “I am resigning my position with immediate effect.”

Recalling back, last April, the UK liquor major alleged that its auditors found financial irregularities that dated back to the period before it bought a controlling interest in USL in 2013. As a result, State Bank of India and Punjab National Bank have declared Mallya a willful defaulter for failing to pay dues amounting to R7,000 crore to 17 banks. The loans were taken by now-defunct Kingfisher Airlines.

Mallaya_Cricket
Mallaya_Cricket

Going forward, his son Sidharth Mallaya would remain on the board of the USL group company which holds the Royal Challengers Bangalore IPL franchise and Diageo can’t “seek to remove him from that board for a period of two years”. The father will be the team’s chief mentor.

Source: Indian Express

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