Vijay Mallya, chairman of Bengaluru-based UB Group, has resigned from the chairmanship of group company United Spirits Ltd, and said on Thursday he planned to move to England to be closer to his children.
In a statement issued late on Thursday evening, Mallya, who was in controversy recently due to long overdue loans (with interest) in excess of Rs 7,000 crore to a consortium of 17 banks by the defunct Kingfisher Airlines, will take the title 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. Accordingly, I am resigning my position with immediate effect,” Mallya’s statement said.
Last April, reports of financial irregularities emerged after UK-based Diageo, the new owners of USL, said investigations by its auditors showed that the irregularties predate its bought a controlling interest in USL in 2013.
In a statement to the stock exchanges, Diageo said that in light of the resignation, MK Sharma, currently an independent, non-executive director and chairman of the audit committee, has been appointed as chairman of USL’s board with effect from today (Thursday).
VIJAY MALLYA’S FULL STATEMENT:
“Having recently turned 60, I have decided to spend more time in England, closer to my children.
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. Accordingly, I am resigning my position with immediate effect.
I am pleased to have been able to agree terms with Diageo and United Spirits Limited. The agreement we have reached secures my family legacy.
I have agreed a mutual release with both Diageo and United Spirits from claims concerning the alleged irregularities disclosed by USL in April 2015. I am now the Founder Emeritus of United Spirits which recognises my contribution in building United Spirits to what it is today and evokes great emotions and a degree of extreme satisfaction having steered United Spirits from a sales volume of just under 3 million cases to over 120 million cases when control was passed to Diageo.
I fondly remember, as a young boy, launching McDowell’s, which is the largest selling brand in the industry. I also recall the challenges and personal sacrifices in the tumultuous acquisition of Shaw Wallace and the Royal Challenge brand. I feel both happy and satisfied that I helped create United Spirits as a clear market leader in the industry which contributed immensely to the local state economies.
On the sporting front, I will now be the Chief Mentor of the Royal Challengers Bangalore. I have been passionate about this team since inception and am determined to do whatever I can to win the IPL trophy. I am glad that my son, Sidhartha, will remain as a Director as he is equally passionate about RCB.
I have also agreed to a global (excluding United Kingdom) 5 year non-compete arrangement.”
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