Diageo sues Vijay Mallya to recover $40 million
Bloomberg|
Updated: Nov 17, 2017, 11.38 PM IST
LONDON: Weeks before a London extradition hearing, Indian tycoon Vijay Mallya faces a second legal battle after Diageo Plc sued to recover a $40 million payment made when he was ousted from United Spirits Ltd. last year.
Diageo filed the suit in London Tuesday after setting out the grievances in its annual report in August. The drinks giant claims Mallya breached a $75 million agreement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016.
It’s also seeking about $141 million in questionable payments made by companies affiliated with Mallya. His son, Sidhartha, is also named in the suit.
Diageo has amassed a 55% stake in United Spirits since it first purchased a share of the Indian whiskey producer in 2013. It battled for months to oust Mallya as chairman after an internal inquiry alleged he had diverted funds to other companies under his control. Last year, the British distiller agreed to pay Mallya $75 million over five years to leave the company and not compete or interfere with it for five years. As part of the arrangement, Diageo also said it would release Mallya from liabilities flagged in the internal report.
Diageo filed the suit in London Tuesday after setting out the grievances in its annual report in August. The drinks giant claims Mallya breached a $75 million agreement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016.
It’s also seeking about $141 million in questionable payments made by companies affiliated with Mallya. His son, Sidhartha, is also named in the suit.
Diageo has amassed a 55% stake in United Spirits since it first purchased a share of the Indian whiskey producer in 2013. It battled for months to oust Mallya as chairman after an internal inquiry alleged he had diverted funds to other companies under his control. Last year, the British distiller agreed to pay Mallya $75 million over five years to leave the company and not compete or interfere with it for five years. As part of the arrangement, Diageo also said it would release Mallya from liabilities flagged in the internal report.
