Vijay Mallya's Rs 515 crore 'sweetheart deal' faces Sebi scrutiny

New Delhi: Vijay Mallya's Rs 515-crore 'golden parachute' to exit United Spirits faces an extensive scrutiny by markets regulator Sebi, which has begun looking into possible violations of corporate governance and other norms because of
vijay mallya s rs 515 crore sweetheart deal faces...
PTI February 26, 2016 23:41 IST

New Delhi: Vijay Mallya's Rs 515-crore 'golden parachute' to exit United Spirits faces an extensive scrutiny by markets regulator Sebi, which has begun looking into possible violations of corporate governance and other norms because of this deal.

Sebi is looking into the role of United Spirits and its main promoter UK-based Diageo Plc, as also that of Mallya and his group firms that are or have been shareholders in India's leading liquor maker, a senior official said.

Sebi is scrutinizing intricacies of the deal and may soon seek further details from USL, Diageo, Mallya and others. Besides, the regulator is also looking into the trading data for USL shares to check whether there have been any violation of insider trading norms or other irregularities.

He further said that the corporate affairs ministry and other agencies may also join in as the deal, struck on Thursday between Mallya and Diageo, has raised "serious doubts" about whether the corporate governance norms have been followed in "letter and spirit" in this matter.

A new scrutiny has been launched even as an earlier probe is continuing against Mallya and his UB Group, as also others, with regard to alleged financial irregularities at United Spirits Ltd (USL) relating to loans advanced to UB firms including for long-defunct Kingfisher Airlines.

Besides, various UB Group firms are already facing probes by Sebi relating to listing rule violations, while corporate affairs ministry is also looking into alleged violations of certain provisions of the Companies Act. The role of previous auditors is also under the scanner.

The corporate affairs ministry may also look at the fresh developments that have taken place because of Mallya deciding to quit as Chairman and Non-Executive Director at USL after Diageo agreeing to pay $75 million (over Rs 515 crore) and to absolve him of all liabilities with regard to alleged financial regularities in the past.

Related Tags: Vijay MallyaSEBI
 
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