Rediff.com  » Business » Legal panel allows Vijay Mallya to head United Breweries

Legal panel allows Vijay Mallya to head United Breweries

By BS Reporter
July 29, 2016 08:51 IST

The board of directors will review the position of Vijay Mallya, under self-exile in Britain, at its next meeting on August 12.

Vijay Mallya would continue to be chairman of United Breweries (UB), majority stake held by Dutch beverage maker Heineken, after a legal panel gave its affirmation for the liquor baron to continue in office.

The board of directors will review the position of Mallya, under self-exile in Britain, at its next meeting on August 12.

The Economic Times first reported the development, on Thursday.

UB had sought legal opinion on Mallya's status after a notification by the Securities & Exchange Board of India (Sebi) said a person named a wilful defaulter could not be nominated to a board position.

Mallya, who has been so named, has contested the Sebi move, saying that he's chairman and promoter of the company and did not require a nomination.

Mallya holds 30.71 per cent stake in UB, personally or through his companies such as United Breweries (Holdings) Ltd and other investment arms.

However, half of it is pledged with banks and financial institutions as collateral for loans taken to run the long-defunct Kingfisher Airlines. 

                                             Vijay Mallya saga: Complete Coverage 

Mallya, who once presided over the country's largest organised liquor and beverage empire, lost majority stake to global giants Diageo and Heineken after his airline venture went bankrupt in 2012.

Mallya pledged most of his shares to repay dues, while still owing banks Rs 7,200 crore in unpaid loans.

The banks, led by State Bank of India, have filed cases against Mallya in several courts to recover the money. Mallya is also being investigated by the Enforcement Directorate on charges of money laundering. And, the government has cancelled his passport, after he failed to respond to notices and jumped bail.

Earlier this week, the Supreme Court asked Mallya why contempt proceedings should not be initiated against him after he failed to honour its direction to disclose all his assets globally.

HEAD OF BOARD?

The board of directors will review the position of Vijay Mallya at its next meeting on Aug 12

UB had sought legal opinion on Mallya’s status after a notification by Sebi said a person named a wilful defaulter could not be nominated to a board position

Mallya has contested the Sebi move saying he’s chairman and promoter of the company and did not require a nomination.

He holds 30.71% stake in UB, personally or through his companies such as United Breweries (Holdings) Ltd and other investment arms.

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BS Reporter in Bengaluru
Source: source
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