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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April 18,2025

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Mangaluru: On a scorching summer Friday, April 18, the usually quiet locality of Adyar Kannur in Mangaluru transformed into a powerful symbol of resistance and unity. A massive public protest, led by the Karnataka State Ulema Coordination Committee, witnessed an overwhelming turnout of nearly 3,000 people voicing their dissent against the Central Government’s recent amendments to the Waqf Act. 

The protest wasn’t just an outcry—it was a declaration of solidarity, discipline, and deep-rooted concern over the perceived infringement of religious and institutional autonomy.

Organized under the leadership and guidance of the Khazis from Dakshina Kannada and Udupi, the protest drew people from all corners of the region including Udupi, Dakshina Kannada, Chikkamagaluru, and Kodagu districts. The protest venue, Sha Garden in Adyar Kannur, turned into a sea of people as participants gathered from various towns and villages despite the scorching afternoon sun.

From 2 PM onwards, people began arriving in large numbers. The influx of participants led to significant traffic congestion on the adjoining highways, compelling authorities to reroute vehicles to maintain order. Inside the city and surrounding areas, many shops remained closed, partly due to the event and partly as it coincided with the sacred Jumma prayers.

Security was handled with tight coordination—police personnel were stationed at all major junctions, crossings, and strategic points. Alongside them, volunteer marshals maintained decorum at the protest site, managing the crowd efficiently and ensuring cleanliness by removing empty water bottles and litter.

Chants of “Azaadi” (freedom) echoed through the grounds as protesters raised their voices in peaceful opposition to the Waqf Amendment Bill. Despite the emotionally charged atmosphere, the protest remained peaceful. The organizers consistently appealed to the crowd via loudspeakers to maintain harmony and avoid any provocative slogans.

Drone surveillance and videographers were deployed for complete documentation of the event, enhancing both the security and transparency of the protest. However, the sheer number of participants caused temporary network disruptions, affecting mobile communication in the area.

Adding a patriotic touch, several protestors were seen waving the Indian national flag, reinforcing that the movement was deeply rooted in constitutional values and democratic expression.

Among the dignitaries present were UK Abdul Azeez Darami Chokkabettu, Dr. M S M Zaini Kamil, Abdul Khader Darami Kukkila, Kasim Darami Kinya, Aboobakkar Siddique Montugoli, Mehboob Sakafi Kinya, and Ashraf Kinara. Their presence underlined the seriousness of the gathering and provided moral and spiritual guidance to the demonstrators.

The peaceful protest stood as a clear, disciplined, and democratic expression of the Muslim community’s concern, sending a strong message to the authorities: religious rights and institutional independence are not to be tampered with.

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News Network
April 26,2025

Riyadh: Prime Minister Narendra Modi's recent visit to Saudi Arabia on April 22 marked a significant step in reaffirming the enduring friendship between India and the Kingdom. During his visit, PM Modi engaged with leading Indian-origin business figures, highlighting their pivotal role in Saudi Arabia's economic growth.

Among the distinguished attendees were Mr. Ashif Karnire, Chief Executive Officer of the prestigious Expertise Group, and Mr. Anshif Karnire, Chief Strategy Officer of the group, whose participation underlined the vibrant entrepreneurial spirit of the Indian community in Saudi Arabia.

Joining them were other prominent business leaders, including Mr. Yusuf Ali, Managing Director of LuLu Hypermarket, and Dr. Alisha Moopen, Group CEO of Aster Healthcare. Each of these leaders represents enterprises that have made outstanding contributions across diverse sectors of the Saudi economy.

The discussions centred around the influential role of Indian entrepreneurs in Saudi Arabia’s development journey, with PM Modi acknowledging their exceptional contributions.

The robust presence of Indian businesses continues to be a driving force in the Kingdom’s economic diversification efforts. The meeting not only reaffirmed the strong ties between India and Saudi Arabia but also opened new avenues for collaboration, promising mutual growth and prosperity in the years ahead.

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April 16,2025

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Bantwal, Apr 16: A fatal pothole on a local road has claimed the life of a young community leader, sending shockwaves through the Bantwal region. Melroy D’Sa (25), president of the Thodambila Unit of the Indian Catholic Youth Movement (ICYM), died in a tragic bike accident late Tuesday night.

Melroy was reportedly riding his motorcycle when he lost control after hitting a pothole. Locals who witnessed the incident rushed him to a nearby hospital, but despite swift medical attention, he could not be saved.

A beloved figure in youth circles, Melroy was known for his leadership, vibrant spirit, and active involvement in community service across the Bantwal deanery. Many had seen him as a rising leader with a bright future.

The ICYM Central Council expressed profound grief over the loss, paying tribute to Melroy’s dedication to youth empowerment and his unwavering commitment to social causes. His untimely death has left a deep void in the community he passionately served.

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