Vijay Mallya diverted around Rs 1,225 crore, says United Spirits Limited
The Diageo-owned company said Force India Formula One, Watson Ltd, Continental Administrative Services and Modall Securities Ltd were some of the beneficiaries.
Former liquor baron Vijay Mallya diverted funds to the tune of Rs 1,225.3 crore between October 2010 and July 2014, United Spirits Limited said on Saturday. Prima facie, investigation found “actual or potential” diversions amounting to some Rs 913.5 crore, in addition to “other potentially improper transactions” worth Rs 311.8 crore that involved USL and its Indian and overseas subsidiaries, the company filed to the Bombay Stock Exchange, PTI reported.
Diageo bought controlling stakes of the company in 2013. It holds 55% of the shares currently. The British company was controlled by Mallya's United Breweries during the October 2010 and July 2014 period.
According to USL, Force India Formula One, Watson Ltd, Continental Administrative Services, Modall Securities Ltd, Ultra Dynamics Ltd and Lombard Wall Corporate Service Inc were some of the beneficiaries of the diverted funds. USL said Mallya “appears to have a material, direct and indirect interests” in each of them. “The Indian beneficiaries or recipients of the funds identified by the additional inquiry included, in most cases, KFA [Kingfisher Airlines],” the filing read.