Vijay Mallya companies diverted Rs.1,225 crore: United Spirits Limited


New Delhi: United Spirits Limited (USL), controlled by Diageo, on Saturday said that an internal inquiry had found instances of fund diversion from the company to entities associated with troubled tycoon Vijay Mallya. United Spirits on Saturday disclosed fund diversion and improper transactions worth Rs 1,225.3 crore involving entities linked to the embattled former chairman , including Kingfisher Airlines and his Formula One team.

Prima facie, investigation found “actual or potential” diversions amounting to some Rs 913.5 crore, in addition to “other potentially improper transactions” worth Rs 311.8 crore that involved USL and its Indian and overseas subsidiaries, the company filed to the Bombay Stock Exchange, a news agency reported.

Diageo bought controlling stakes of the company in 2013. It holds 55% of the shares currently. The British company was controlled by Mallya's United Breweries during the October 2010 and July 2014 period.

According to USL, Force India Formula One, Watson Ltd, Continental Administrative Services, Modall Securities Ltd, Ultra Dynamics Ltd and Lombard Wall Corporate Service Inc were some of the beneficiaries of the diverted funds. USL said Mallya “appears to have a material, direct and indirect interests” in each of them. “The Indian beneficiaries or recipients of the funds identified by the additional inquiry included, in most cases, KFA [Kingfisher Airlines],” the filing read.