India: Five-year ban on Vijay Mallya from holding senior positions for involvement in fraud

Vijay Mallya, 62-year old Indian liquor baron, ex-chairman of United Breweries and  co-owner of formula 1 team Force India was  banned with immediate effect on Friday from holding any position as director or key managerial person of a listed company for five years for his involvement in fraud. The move comes as a consequence of the delisting of Mallya’s defunct Kingfisher Airlines from the National Stock Exchange of India (NSE) two days before.

Securities and Exchange Board of India (SEBI) whole-time member Shri Gurumoorthy Mahalingam said:  "In the context of diversion of funds perpetrated in a listed company by way of dubious and concealed financial statements/projections or false books of accounts, it is inevitable that SEBI should step in and take appropriate action." At the same time SEBI has also barred Ashok Capoor, former managing director of United Spirits (USL)  and P.A Murali, former executive director and chief financial officer of USL for a period of one year each.

Indian courts have asked now the United Kingdom to expedite the extradition of Vijay Mallya to India. Mallya fled India two years ago and has been living on bail in the UK since August last year, (inside.beer, 8.3.2018)

Mallya also announced on Thursday to step down as a director of the formula 1 team, which he owns together with Indian businessman Subrata Roy (42.5% each) and Dutch Mol family, headed by businessman Michiel Mol (15%).  He announced to be succeeded by his son Siddharth Mallya, a 31-year old aspiring actor and former marketing manager for Guinness. He also said that he had no intention of selling the team at the present moment.  "I have my own legal issues to take care of, so it's better that the company remains unaffected," he told UK’s weekly magazine Autosport.

 

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