In January, Sebi had barred Mallya and six former officials of USL from securities markets in a case related to illegal fund diversions.
The company secured independent valuation for these properties and had shared the same with Mallya
.jpg)
According to data reviewed by Business Standard, the dues from UB Holdings alone to USL shot up by 4.3 times to Rs 1,188 crore (Rs 11.88 billion) by the end of the last financial year, compared to an outstanding of Rs 272 crore (Rs 2.72 billion) by the end of FY12.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Sebi's order comes close on the heels of Central Bureau of Investigation naming Mallya, Kingfisher Airlines and nine others, in the charge sheet related to the 2015 loan default case.
Banks who had lend to Kingfisher Air are finding it difficult to recover dues.
Most analysts, who have long stopped covering UB stocks because of continuing troubles, were surprised to see a sudden spike of up to 20 per cent in their share prices on Tuesday.
The world's largest liquor maker Diageo Plc on Tuesday made an open offer worth Rs 11,448.91 crore (Rs 114.48 billion) to acquire an additional 26 per cent stake in United Spirits Ltd.
The Supreme Court has rejected an appeal by Vijay Mallya to overturn charges against him for allegedly violating foreign exchange rules, adding to the legal challenges facing one of the country's most prominent businessmen.
Nearly 700 of the 1,500 employees, who still claim to be on the payroll of the defunct airline, are women.
Troubled business tycoon Vijay Mallya, on Sunday, asserted that his stepping down as chairman of the United Spirits Ltd will not affect his control in Formula One team, Sahara Force India.
Such an exit arrangement is commonly known in the business parlance as 'golden parachute' or 'sweetheart deal'
In a filing to the Bombay Stock Exchange (BSE), USL said it had made a recommendation to the board of subsidiary United Spirits to consider the sale of the entire share capital of Whyte & Mackay.
Sebi has now proposed that the Companies Act should also clearly mention that a person should vacate the office of a director if it orders his or her disqualification.
The association also wondered how the brand value of Kingfisher was considered as a collateral while sanctioning a loan, and alleged that even when RBI knew that this was a "deliberate default", no action was taken by the banks.
United Breweries says sales could fall by 40% following court ban.
United Spirits wants to align its resources to meet its goals of becoming a trusted and respected consumer goods company.
Banks have been struggling hard to recover dues from grounded Kingfisher Air.
The agency is looking at alleged "diversion of funds and financial reporting frauds".
In 2012, Diageo had paid Rs 3,635 cr directly to Mallya for his 19.3% stake in United Spirits.
The consortium led by SBI has also initiated the process of recovery.
Sebi issued final observations, necessary for the offer and the deal as a whole to go through, on May 21.
Beleaguered liquor baron Vijay Mallya on Wednesday announced he will retire as chairman of Sanofi India and will not seek reelection as a director of the drug maker.
Diageo, under a share purchase agreement (SPA) with UBHL and various other sellers, had acquired 21,767,749 shares (14.98 per cent) in USL
- I think it's a 'No' at this point of time, purely based on the whole negative aura that has been generated
United Bank's exposure to Kingfisher Airlines was around Rs 350 crore (Rs 3.50 billion)
The airline, part of Vijay Mallya-led UB Group, has been grounded since October 2012, after being bogged down by huge and mounting losses.
Sebi to look into disclosure, other lapses in the Vijay Mallya, Diageo case.
Asked to quit United Spririts' board, Vijay Mallya struck a defiant note saying he 'intends' to continue as its Chairman.
SBI approaches Karnataka HC to arrest Mallya, impound passport, disclose full assets
Mallya will now be the Founder Emeritus of USL
With this, Heineken's stake has risen from 39% to 42.2%.
The company contented before the tribunal that the amount was paid outside India.
The company will move swiftly to consolidate its recent acquisition of three distilleries and will also take a decision on setting up a Rs 650-crore two-furnace glass plant in Andhra Pradesh, said sources.
Kingfisher Airlines owed Indian banks Rs 7,000 crore as of January.
RBI, Enforcement Directorate to see if money was sent to tax haven
The offer, open on April 10-26, was meant to acquire close to 38 million shares at Rs 1,440 a piece.
Diageo, the world's largest distiller, has been focusing on compliance at United Spirits Ltd (USL) after its acquisition of a controlling stake in India's largest spirits maker.
Lenders to Kingfisher Airlines, led by State Bank of India, had moved courts to get residual rights over these shares after Srei recovered the collateral from the defunct Kingfisher Airlines, making it difficult for Srei to sell the shares, said a legal source.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances