More trouble ahead for liquor baron Vijay Mallya

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In good spirits Mallya controls a third of the 70-odd breweries in India, all thanks to his father’s foresight
In good spirits Mallya controls a third of the 70-odd breweries in India, all thanks to his father’s foresight
Photo: AFP

Notices have been issued to United Spirits Ltd (USL) by the ministry of corporate affairs and the I-T Department for inspection of its book subsequent to a probe by its new management over irregularities in loans given by it to various companies of Vijay Mallya-led Group.

USL said its Board has asked Anand Kripalu , chief executive officer and managing director to further investigate “possible existence of any other transaction of a similar nature” with certain additional parties.

The USL in a filing to the BSE said, “The company has received a notice from the MCA for an inspection of the books of accounts and other books.”.

It further said: “A notice under Section 131 of the I-T Act, 1961, has also been received. The company is cooperating with the authorities in relation to the same.”

On its move for a further probe, the company said its inquiry had identified certain “additional matters” raising concerns “as to the propriety of the underlying transactions” with “additional parties” without specifying details.

“The Board believes that it is necessary to assess whether additional matters or transactions with additional parties were improper. It has therefore directed the MD and CEO to review the additional matters during the period covered by the inquiry and report the same to the board,” USL said.

In April this year, the new management under Diageo, which bought 55 percent controlling shares in USL,  had asked Vijay Mallya to step down from the chairmanship of USL alleging funds diversion to Kingfisher and other UB group entities.

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