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

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.

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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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January 17,2025

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Bengaluru: External Affairs Minister S Jaishankar asserted on Friday that the opening of "long-in-waiting" US consulate in Bengaluru was the "very important milestone" in the bilateral ties and urged the American authorities to ensure that the mission starts visa operations at the earliest.

"This will be my number one talking point with Secretary (of State Nominee Marco) Rubio when I go and see him. The sooner we get it done, the better it is," said Jaishankar.

The External Minister was in Bengaluru today to attend the "site dedication ceremony" of the fifth United States consulate in India, which will start operating in Bengaluru soon.

Delivering his speech, Eric Garcetti, US Ambassador to India, said the consulate in Bengaluru will not be offering visa services for the time being.

In his speech, Jaishankar pointed to statistics to nudge the US to get around to issuing visas from Bengaluru as early as possible.

"I was checking figures, and was very glad to see that last year, the RPO (Regional Passport Office) Bengaluru issued 8,83,000 passports. That's just for one year. Do the math, and you will see how important it is to ensure that travel is smooth," added Jaishankar.

He also added that there are three flights every week from here to San Francisco. "Hopefully, if Boeing and Airbus deliver, there'd be more. I think that's a legitimate expectation," said Jaishankar.

Jaishankar said a US consulate in Bengaluru has been "long-in-waiting".

"One, which I believe, Bengaluru legitimately deserved and expected," he added.

"I think Bengaluru has such an important place that it was for me an imperative that there is a permanent resident presence of American diplomats here," said Jaishankar.

He also said every time he had visited the city in the last five years, there was always somebody who would ask him, 'so, when is that consulate coming?'.

"It was from, really, I would say, the cross section of the society. It was from businessmen; it was from the tech world; it was from academics. It was even from people you would meet in a restaurant," added Jaishankar.

According to him, Prime Minister Narendra Modi in June 2023 had brought up the issue of opening a consulate in Bengaluru when he visited the US.

He also said India had promised to open a consulate in Los Angeles if the United States "get the Bengaluru consulate done". He said now, with the opening of the consulate, collaborations in defence and education would reach new heights.

"I think the formal opening of this consulate is one more sign that we are overcoming the hesitations of history. It is now within our grasp, within the realm of possibility, that we realise more fully the potential of India-US relations. And I think it is important that Bengaluru too realises its potential in the relationship," said Jaishankar.

In his address, US Ambassador Garcetti, who would be relinquishing his responsibility in India soon, said he was glad that getting a consulate up and running in Bengaluru would be his last task in India.

"You know, our relationship in India is not new. Our second consulate in the world was here in India. After the independence of a new America in 1776, we opened a consulate in Lyon, France, and then the second was in Kolkata, showing, back then, the importance of India to a new American nation," said Garcetti.

India, said Garcetti, is now the second largest mission of America anywhere in the world.

"It produces the second most visas, the most students we're breaking records every single year '“record employees, record visas, record students, record military exercises, record engagement from the seabed to space," added Garcetti.

Deputy Chief Minister D K Shivakumar, who was also present during the "site dedication ceremony" said the opening of the consulate in Bengaluru is a testament to the growing importance of Karnataka in the global stage.

"Nowadays, the world is looking at India through Bengaluru. We know there are a lot of hiccups there, as Bengaluru is not a well-planned city. But still the city has proved itself to be the safest city in the entire country for the global firms to have their headquarters," said Shivakumar.

Other dignitaries present for the ceremony include MP Tejasvi Surya, Karnataka's Minister for Large & Medium Industries and Infrastructure Development M B Patil, Minister for IT & BT Priyank Kharge.

Several entrepreneurs from the city, including Kiran Mazumdar-Shaw, executive chairperson and founder of Biocon Limited and Biocon Biologics Limited, had also attended the 'site dedication ceremony'.

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News Network
January 17,2025

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Mangaluru, Jan 17: A heart-wrenching accident at Nadupadavu near Kattukodi on the outskirts of the city claimed the life of a young scooter rider this morning. 

The victim, identified as Abubakar Siddiq Razwi (22), son of Moydeen Kunji Bavu and a resident of Nadupadavu, tragically succumbed to his injuries on the spot.

The accident occurred when a scooter traveling from Deralakatte collided with an Ace Tempo heading from Mudipu to Thokkottu.

Abubakar, a final-year student at an Arabic Shariah College in Kasargod, leaves behind a community in mourning. The tempo driver also sustained injuries in the collision.

The Mangaluru South Traffic Police have registered a case and are conducting an investigation into the incident.

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News Network
January 9,2025

Mangaluru: Establishing a Beary Development Corporation is a valid demand, but its implications must be carefully studied, remarked Speaker UT Khader. He proposed forming an expert committee to evaluate the corporation’s potential impact on the Beary community during a district-level conference of the Beary-speaking community, organized by the Akhila Bharata Beary Mahasabha at Kudmul Ranga Rao Town Hall on Wednesday.

Khader expressed concerns over inefficiencies in existing government-established corporations, such as unfilled leadership positions, lack of appointed members, and insufficient funding. “The Beary Development Corporation must avoid similar pitfalls,” he emphasized. He noted that the Minorities Development Corporation already provides various schemes for Beary Muslims, urging a detailed assessment to ensure the new corporation’s funding does not fall short of current provisions, which could disadvantage the community.

Praising the industrious and self-respecting nature of the Beary community, Khader highlighted the respect Beary elders once commanded in villages. He encouraged the youth to uphold this legacy and actively contribute to the community’s progress. Additionally, he commended the Beary youth for their swift and dedicated responses during emergencies, which have garnered widespread recognition.

Khader underscored the importance of unity, cautioning against fostering divisions within the community. He also stressed the critical role of education in development, urging the maintenance of detailed records for SSLC and PUC students to track progress.

The event was presided over by Azeez Baikampadi, president of the Akhila Bharata Beary Mahasabha. Among the dignitaries present were former MLA Mohiudeen Bava and retired police officer GA Bawa. Dr. UT Ifikhar Ali Farid, honorary president of the Akhila Bharata Beary Mahasabha and chairman of the Karnataka State Allied and Healthcare Council, was felicitated during the program.

In notable initiatives, Kanachuru Monu, chairman of Kanachuru Medical College, unveiled the Mahasabha’s new website, while Sheikhabba Karnire of Expertise Company, Jubail, launched an IAS-IPS program aimed at empowering the Beary community.

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