Only shareholders can 'oust' him from USL, says Mallya

The decision comes after dispute over his criticism of CEO

Asked to quit United Spririts' board, Vijay Mallya struck a defiant note saying he ‘intends’ to continue as its Chairman and refuted the charges made by the company’s board with regard to its prior-period accounts.

Mallya, who has sold controlling stake in United Spirits  (USL) to world's largest spirits maker Diageo, also said that only "shareholders can 'oust' a Director" and he would continue to function as USL Chairman "in the normal manner".

Alleging fund diversion to Kingfisher and other UB group entities, United Spirits' board on Saturday asked Mallya to quit the board. The company said it has "lost faith" in Mallya and would go to shareholders if he refuses to resign.

Reacting to the charges, Mallya said in a statement, "All I wish to say is that I intend to continue as Chairman of USL in the normal manner. This includes chairing monthly operating review meetings and board meetings."

Sebi intervention
With Mallya asked to quit USL board, markets watchdog Sebi and other regulatory agencies have begun looking into suspected irregularities at the company, including about the alleged fund diversion and disclosure-related lapses.

Irregularities have been alleged in the past transactions entered into by USL between 2010 to 2013 with UB group firms.

Top officials said Sebi will look into all possible violations at USL, as also at other UB Group entities, some of which happen to be separately listed companies and others form part of the promoter groups. The role of some individuals, including Mallya's, will also be looked into.