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Unaware of United Spirits’ additional enquiry, says Vijay Mallya

Then USL was controlled by the UB Group. In July 2013, Mallya sold a controlling stake to Diageo, which later increased its holding to 55 per cent.

, ET Bureau|
Updated: Jul 11, 2016, 05.03 AM IST
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MUMBAI: Vijay Mallya on Sunday expressed his resentment with United Spirits (USL) saying he is unaware of an additional enquiry by the liquor company on “improper transactions” in the past.

USL, formerly owned by Mallya is now controlled by British liquor giant Diageo. “I have absolutely no knowledge about this purported enquiry by E+Y (Ernst & Young or EY) nor the suggested allegations. Surprisingly neither USL nor E+Y have given me any details of the allegations or any opportunity to respond,” Mallya said in a statement.

It came one day after USL in a post board meet stock exchange filing said that its enquiries revealed fund diversions amounting to Rs 1,225.3 crore.

It had initiated enquiries on April 25, 2015, unearthing “past instances of improper transactions concerning USL and its subsidiaries in India including what appeared prima facie, to be diversions of funds from USL and its subsidiaries to various UB Group companies including Kingfisher Airlines”, said USL’s statement.

The carrier shut down in 2012, riddled with cash and debt problems. It sank with an unpaid debt of more than $1.2 billion. “In most cases, the diversion of funds appear to be affiliated or associated with USL's non-executive chairman Dr Vijay Mallya,” it added.

Then USL was controlled by the UB Group. In July 2013, Mallya sold a controlling stake to Diageo, which later increased its holding to 55 per cent.

“I can only reiterate that all transactions were legal, above board and approved by USL Auditors, the USL Board and shareholders. Over and above this Diageo conducted an extensive due diligence on USL prior to acquiring shares. It is surprising and unfortunate that unfounded allegations are now being made without any reference to me whatsoever,” Mallya is now in London, chased by creditors which include 17 banks as well as the Enforcement Directorate- India's economic law enforcer over dues of Rs 9,000 crore. He went to the UK on March.

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