Former liquor baron Vijay Mallya will continue as chairman of United Breweries Ltd (UBL), the company's spokesperson confirmed on Wednesday. In May, the Securities and Exchange Board of India ruled that wilful defaulters cannot hold board positions at listed companies or raise money from the securities markets. However, according to the company, the new Sebi rules do not bar Mallya from heading it, reported The Indian Express.
UBL Director Chug Yogendra Pal said the company was speaking to a former chief justice of India regarding the legality of their decision taken at the annual general meeting in Bengaluru. He said the investigating agency has not attached any properties or shares of the company in connection to the case.
Another company director, A K Ravi Nedungadi, said Mallya has been attending board meetings through video conference and the Company Law allows him to continue as chairman. This comes only days after the Enforcement Directorate attached properties worth Rs 6,630 crore belonging to the businessman in connection with a money laundering case.
Mallya has been accused of money laundering and defaulting on loans worth Rs 9,000 crore. He left India on March 2. He has said that he is unlikely to return to the country.