Vijay Mallya quits royal challenge, hopes to revive spirits in UK

executive@coastaldigest.com (Agencies)
February 25, 2016

Bengaluru, Feb 25: Troubled tycoon Vijay Mallya on Thursday resigned as the chairman of United Spirits (USL), the country's largest liquor company founded by his late father Vittal Mallya, almost a year after its board had asked him to step down, citing certain inappropriate dealings which occurred on his watch. Former Hindustan Unilever veteran M K Sharma has been appointed as the new non-executive chairman of USL, now controlled by London-based Diageo Plc.

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"The time has now come for me to move on and end all the publicised allegations and uncertainties about my relationship with Diageo and United Spirits Limited," Mallya said. "I am pleased to have been able to agree terms with Diageo and United Spirits Limited. The agreement we have reached secures my family legacy," he added. Vittal Mallya had set up USL soon after India's Independence. Mallya said he has decided to spend more time in England with his children, including eldest son Siddharth Mallya, who is pursuing studies in London. Mallya had earlier told TOI that he was relinquishing control of his group companies as there was no family succession plan. His son, who briefly dabbled in business, had then relocated to Los Angeles to pursue an acting career.

Mallya's exit is a sordid story of a flamboyant industrialist walking away from his flagship as a fallout of the disastrous foray into aviation—the grounded Kingfisher Airlines which saddled the group with Rs 7,000-crore debt. The latest development unfolded even as SBI and Punjab National Bank declared him a wilful defaulter, which threatened to jeopardize banking ties of the companies on which he remains a board member.

Mallya, who turned 60 last December, has signed a five-year non-compete agreement and will desist from buying additional shares in USL. Mallya had agreed to sell controlling interest to Diageo, paving the way for a$3-billion takeover in 2012. However, ties between Mallya and Diageo soured soon thereafter with the board taking note of certain related party transactions, which were rejected by the shareholders.

USL will pay Mallya $75 million over the next five years towards non-compete and non-interference agreements struck as part of the latter's exit deal. The initial tranche of $30 million will be paid in the first year. USL will also allow its former chairman to buy back some of the real estate assets, including Niladri mansion in South Mumbai, which was one of his personal homes, at the prevailing market value. Mallya continues to hold a 4% stake though almost all of this is pledged to various lenders of Kingfisher.

"This agreement is an affirmative action by which Vijay Mallya is disassociating himself from the company completely," Abanti Shankaranarayanan, a spokesperson for Diageo, said in a late night conference call. This rescues the company from all contingent liabilities, safeguards its banking relationships and enables it to focus on performing better in India's $300-billion liquor market, she added.

In April last year, USL board, controlled by Diageo, sought Mallya's resignation stating it had lost confidence in him continuing as chairman of the company due to alleged financial irregularities. Mallya had refused to step down, citing contracts between him and Diageo and had threatened to move courts. But his resistance was seen as a losing battle as Diageo controlled the board and held a 55% stake in the company.

Mallya had indicated in USL's AGM in November he would consider retirement after turning 60. Mallya's exit agreement also settles all claims concerning the alleged irregularities disclosed by USL in April.

Mallya, however, continues to remain as the chairman of United Breweries (UBL) in which he has allowed Dutch beer giant Heineken to emerge as the largest shareholder. Another company UB Holdings, the parent of Kingfisher Airlines, has no significant revenue streams except some rent-yielding commercial real estate assets.

Comments

Zoharab
 - 
Friday, 26 Feb 2016

Please request Mallya to clear his loans & salaries of KF staffs. The goto UK & settle. He still does show off with poor people's money....Very sad nobody is bothered.

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News Network
April 11,2025

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Bengaluru, Apr 11: In a significant development, the Karnataka Cabinet on Friday formally accepted the controversial Socio-Economic and Educational Survey, popularly known as the caste census, nearly a decade after it was conducted. The report will be taken up for detailed discussion in a special Cabinet meeting on April 17.

The survey was originally carried out in 2015 by the Karnataka State Commission for Backward Classes under the chairmanship of H. Kantharaj, and finalised in February 2024 by his successor, K. Jayaprakash Hegde. The long-awaited report—comprising 50 volumes of detailed caste- and community-related data—was placed before the Cabinet in a sealed cover, which was opened during Friday’s meeting.

Backward Classes Welfare Minister Shivaraj Tangadagi, while briefing the media, said the report would now be distributed to all Cabinet ministers so they could examine its findings ahead of the April 17 meeting. Though the government did not disclose the contents of the report, it sought to validate the survey’s legitimacy by presenting statistical data.

“As per the 2011 Census, Karnataka’s population was 6.11 crore. By 2015, when the survey was conducted, it had grown to an estimated 6.35 crore. The survey covered 5.98 crore people—a coverage of 94.17 percent,” Tangadagi said.
He added that only 37 lakh people, or 5.83 percent, were left out of the enumeration process.

Highlighting the scale of the operation, the minister said 1.6 lakh government officials participated in the survey. An expert committee was constituted, which developed 54 criteria to guide the data collection. The state government also engaged Bharat Electronics Limited (BEL) to manage the survey data under a ₹43 crore agreement, with the total expenditure reaching ₹165 crore.

Law and Parliamentary Affairs Minister H. K. Patil announced that a special Cabinet session will be held on April 17 to deliberate on the report's contents. When asked about concerns over the completeness of the data, Patil responded, “Even in the national Census, some people are left out. A 94 percent coverage is a very significant achievement.”

The caste census remains a politically sensitive issue in Karnataka. Dominant communities such as the Lingayats and Vokkaligas have questioned the methodology of the 2015 survey, alleging undercounting. In contrast, Other Backward Classes (OBCs) and SC/ST groups have welcomed the report, arguing that it sheds light on social realities long ignored.

The Congress party had pledged to act on the caste census in its manifestos for the 2023 Karnataka Assembly elections and the 2024 Lok Sabha polls. National party leader Rahul Gandhi has also been advocating for a nationwide caste census.

The Cabinet’s acceptance of the report comes just days after Chief Minister Siddaramaiah’s meeting with Rahul Gandhi in New Delhi, and the Congress Working Committee’s session in Ahmedabad.

Six Ministers Skip Cabinet Meeting

At least six ministers were notably absent from Friday’s Cabinet meeting. These included:

    S. S. Mallikarjun and Laxmi Hebbalkar (both Lingayats)

    M. C. Sudhakar and K. Venkatesh (both Vokkaligas)

    R. B. Timmapur (SC)

    Madhu Bangarappa (Idiga community)

However, Minister Patil clarified that despite their absence, all ministers have endorsed the Cabinet’s collective decision, regardless of caste or community affiliations.

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News Network
April 18,2025

A controversy has erupted in Karnataka after two Brahmin students were allegedly asked to remove their sacred thread (Janivara) and religious wristbands before entering the Common Entrance Test (CET) examination halls. The incident reportedly occurred on Thursday in Shivamogga and Bidar districts, drawing sharp criticism from community groups and prompting a swift response from state ministers.

Videos and complaints shared by parents and community organizations brought the matter to public attention on Friday. Several Hindu groups condemned the action as insensitive and discriminatory.

Investigation

Reacting to the incident, Karnataka’s Higher Education Minister Dr. M.C. Sudhakar called the alleged directive “unacceptable” and assured a thorough inquiry. “It is an excessive act. If this happened at any examination center, we will take it seriously. We must respect the traditions of all castes and religions. I do not support such actions,” the minister told PTI.
He added, “I will seek a report from the concerned officials and consider appropriate steps. This is not about politics or gaining political mileage. We have no intention of hurting the sentiments of any community.”

Education Minister Madhu Bangarappa, whose home district is Shivamogga, also addressed the issue. “There is no legal provision that permits such actions. Although this matter doesn’t fall directly under my ministry, I will coordinate with the concerned department. Since the incident happened in my home district, I will instruct officials to initiate appropriate action,” he said.

Hindutva Organizations Condemn

Community bodies such as the Akhila Karnataka Brahmana Maha Sabha and Vishwa Sanghatane strongly condemned the alleged directive, stating that enforcing such measures under the guise of examination protocols was a violation of religious rights.

Members of the Bhramina Sanghagala Okkuta submitted a formal complaint on Thursday to Shivamogga Deputy Commissioner Gurudatta Hegde, according to a report.

Broader Context

The controversy comes amid ongoing debates over religious expression in Karnataka’s educational institutions. Notably, the previous BJP-led state government had banned students from wearing hijabs in classrooms—a move upheld by the Karnataka High Court and currently under review by the Supreme Court.

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News Network
April 15,2025

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Jeddah/Dammam, April 15: In a significant legal move, Saudi-based law firm International Justice has served a formal legal notice to Air India Express on behalf of passengers affected by the inordinate delay of Flight IX-886. The flight, originally scheduled to depart from Dammam to Mangaluru on 25 March 2025 at 22:10 hrs, was delayed by over 24 hours—causing severe inconvenience and hardship to passengers, many of whom included senior citizens, children, and individuals with medical conditions.

The legal notice, issued by noted Saudi lawyer and partner at International Justice Law Firm, Adv. Ms. Faten Faiz AlAhmari, outlines the distress and suffering endured by the stranded passengers due to the prolonged delay and lack of adequate assistance from the airline.

The initiative for legal escalation was spearheaded by P.A. Hameed Padubidri, a well-known Indian lawyer and social worker based in Saudi Arabia, who closely monitored the ordeal. Upon receiving numerous complaints and witnessing the passengers’ plight firsthand, he collaborated with Adv. Faten Faiz AlAhmari to ensure the matter was formally addressed through appropriate legal channels.

The legal notice outlines several key grievances:
    •    Unexplained delay and extended detention inside the aircraft
    •    Absence of proper accommodation or official communication
    •    Prolonged waiting hours at the airport without basic support or updates

The notice demands the following actions from Air India Express:
    1.    A formal written apology to all affected passengers
    2.    Full compensation for the physical, mental, and financial distress caused
    3.    A detailed explanation regarding the cause of the delay and preventive measures
    4.    Assurance of strict adherence to passenger rights in future operations

The airline has been given 15 days from the receipt of the notice to respond and take corrective action. Failing this, legal proceedings will be initiated in competent courts in both Saudi Arabia and India, with all financial liabilities resting on Air India Express.

This legal action comes amid rising public dissatisfaction over the handling of flight delays by international carriers, particularly those serving the Gulf-India sector.

Hameed Padubidri remarked: “We expected improved efficiency and passenger care from Air India Express after its acquisition by the Tata Group. However, the continued lapses and negligence—especially on Gulf routes—have deeply frustrated the Indian expatriate community. If the airline fails to respond, we will pursue the matter vigorously in both Saudi and Indian courts to ensure justice for the affected passengers.”

The case is now being closely watched by legal experts and passenger rights advocates, highlighting the pressing need for accountability, transparency, and humane treatment during travel disruptions.

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