United Spirits (USL), India’s largest alcoholic beverages maker, will make all efforts to recover loans amounting to R1,655 crore from Vijay Mallya controlled United Breweries (Holdings) Limited (UBHL). The company has already raised a demand on UBHL for repayment of the entire amount due, USL stated in its latest annual report.
According to USL, it had granted loans to eleven companies, firms, limited liability partnerships or other parties including UBHL by way of conversion of certain pre-existing loans, advances, deposits due to the company and its subsidiaries.
USL, which was acquired by UK-based spirits maker Diageo Plc from Mallya, has also filed affidavits in the Karnataka High Court in the ongoing winding up proceedings against UBHL. “The Board had directed a detailed and expeditious inquiry in relation to certain transactions identified during the year ended March 31, 2014. The inquiry stated that between 2010 and 2013, funds involved in many of these transactions were diverted from the company and or its subsidiaries to certain UB Group companies, including in particular, Kingfisher Airlines Limited,” USL said in its annual report.
The loan to UBHL was also voted down by shareholders during the extraordinary general meeting of the company held on November 28, 2014. UBHL also defaulted on payment of interest. Accordingly, the company (USL) raised a demand on UBHL for repayment of the entire balance of the loan and the interest thereon. The company is yet to receive the amounts due and it has fully provided for it in the financial statements, the annual report said.
It may be recalled, Anand Kripalu, managing director of USL had said earlier this year that the company would continue to pursue with UBHL the possibility of recovering dues even though Mallya shifted to London. “Mallya may move to London. This is a loan agreement between USL and UBHL. UBHL is not going to London. So quite clearly, we are reserving the right to pursue and continue to pursue loan recovery.
This agreement will in no way compromise our position,” Kripalu had told analysts.
Mallya quits as Bayer director
Vijay Mallya has stepped down as non-executive independent director of agrochemicals company Bayer CropScience. In a filing to BSE, Bayer CropScience said it has received the resignation intimation from Mallya wherein he said he will resign from the Board of the company with effect from June 30, 2016.
