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UB backs Mallya, lets him continue as chairman

  • United Breweries has decided to let Vijay Mallya continue as its chairman
  • This extension comes despite reports that the enforcement directorate had attached Mallya's  shares in United Breweries
vijay mallya chairman UB

 

Coming out in support of the embattled liquor baron Vijay Mallya, the United Breweries  management said on Wednesday that he would continue as UBL chairman despite reports that the enforcement directorate (ED) had attached his shares in the firm.Company director Chug Yogendra Pal,  chaired the company's  AGM in Bengaluru on Wednesday.

 

Pal said that as per law, Vijay Mallya can continue as the chairman. He further said that, 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.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.

 

On September 5, 2016, ED had issued its second attachment order for assets worth Rs 6,630 crore against Mallya as it had seized his farmhouse, flats and FDs in connection with its money laundering case against him and his associates.

 

The agency had recently expanded the probe in this regard as it took over investigation into the alleged default of loan taken from an SBI-led consortium of nationalised banks. A fresh case was filed by CBI last month.The total attachment made by the agency in this case has now shot up to Rs 8,041 crore as it had attached assets worth Rs 1,411 crore a few months ago.

 

The provisional attachment order, issued under the provisions of the Prevention of Money Laundering Act, said it has ordered seizing shares of USL, United Breweries  and McDowell Holding company, jointly held by the liquor baron and UBHL, and his controlled entities, worth Rs 3,635 crore.

 

The agency has alleged that these assets were the "proceeds generated out of criminal activity" of the alleged default of bank loans as it claimed that Mallya "criminally conspired" with Kingfisher Airlines and United Breweries  to obtain funds through the consortium of banks. Of this total amount, the principal Rs 4,930.34 crore still remains unpaid.

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