E-Malt.com News article: India: Vijay Mallya to continue as chairman of United Breweries Ltd, company says

United Breweries Ltd (UBL), India's largest beer producer, said it supports Vijay Mallya in continuing as the chairman of the company despite the Enforcement Directorate (ED) issuing its second attachment order of property worth about Rs 6,630 crore against him, Times of India reported on September 7.

The backing comes in the wake of reports that Mallya would lose his position as chairman after the seizure of his shares in UBL by ED. The company said as of now, the ED had "not attached" any properties and shares of UBL and Mallya is not disqualified to be the chairman of the company.

"We have looked at every aspect very carefully after Mallya was declared a wilful defaulter. There are no adverse conditions imposed by any statute which debars Mallya from holding a director's position in a listed entity," director Yogendra Pal Chugh, who chaired the company's AGM in the absence of Mallya, said on September 7.

Earlier this week, the agency seized Mallya's farmhouse, flats and FDs in connection with the money laundering case against him and his associates, where the liquor baron has been accused of allegedly transferring money from various UB Group entities to now-defunct Kingfisher Airlines.

The total attachment made by the agency in this case has gone up to Rs 8,041 crore as it attached assets worth Rs 1,411 crore a few months ago. United Breweries, known for Kingfisher Beer, recently withheld payments of about Rs 1.64 crore to Mallya under directives from the Commissioner of Income Tax and also dividend worth Rs 36.6 crore due to an order from the Debt Recovery Tribunal (DRT).


06 September, 2016