New owner Diageo asks Vijay Mallya to quit United Spirits board alleging fund diversion

Alleging fund diversion to Kingfisher and other UB group entities, United Spirits’ new owner Diageo has asked Vijay Mallya to step down as Chairman and Director of the Indian liquor firm, a demand he outrightly rejected.

Diageo, which has bought controlling stake in United Spirits from UB Group, asked Mallya to step down following “various improprieties and legal violations” were found after a probe it conducted into loans given by USL to various UB Group companies. However, Mallya refused to resign and said the inferences and allegations are unjustified and false.