<p>Accounting regulator ICAI has sought details from markets watchdog Sebi on role of auditors in the alleged financial irregularities at United Spirits, where Chairman Vijay Mallya is locked in a boardroom battle to retain his position.<br /><br /></p>.<p>The board of United Spirits Ltd (USL), where UK-based Diageo has acquired controlling stake from Mallya's UB Group, has asked the Indian businessman to step down as Chairman and Director after a probe showed financial irregularities in fund transfer to Kingfisher and other group firms between 2010 and 2013.<br /><br />While Sebi is already looking into the matter, sources said the Institute of Chartered Accountants of India (ICAI) has now written to the capital markets regulator seeking the details.<br /><br />The ICAI has powers to initiate disciplinary action against auditors if they are found to have indulged in malpractices.<br /><br />While Mallya has refused to resign, citing 'certain contractual obligations' on part of USL's current owner Diageo to support his position, the UK-based firm is looking into the options available with it on whether to support the board resolution seeking his removal.<br /><br />Without fixing individual responsibility for the alleged lapses, USL board resolved it has "lost confidence" in Mallya and therefore it asked him to quit as Chairman and Director.<br /><br />Besides, USL has initiated a process to take action internally against other employees responsible for the alleged irregularities.<br /><br />The alleged irregularities also relate to possible violations of the Companies Act, which may lead to the Corporate Affairs Ministry separately looking into the matter.<br /><br />Concerned over the ongoing boardroom battle and the alleged lapses in the past, the minority shareholders of USL have also approached Sebi.<br /><br />Diageo has acquired 54.78 per cent stake in USL for about USD 3 billion, making it the controlling stakeholders, while the UB group firms continue to hold nearly 3 per cent stake.</p>
<p>Accounting regulator ICAI has sought details from markets watchdog Sebi on role of auditors in the alleged financial irregularities at United Spirits, where Chairman Vijay Mallya is locked in a boardroom battle to retain his position.<br /><br /></p>.<p>The board of United Spirits Ltd (USL), where UK-based Diageo has acquired controlling stake from Mallya's UB Group, has asked the Indian businessman to step down as Chairman and Director after a probe showed financial irregularities in fund transfer to Kingfisher and other group firms between 2010 and 2013.<br /><br />While Sebi is already looking into the matter, sources said the Institute of Chartered Accountants of India (ICAI) has now written to the capital markets regulator seeking the details.<br /><br />The ICAI has powers to initiate disciplinary action against auditors if they are found to have indulged in malpractices.<br /><br />While Mallya has refused to resign, citing 'certain contractual obligations' on part of USL's current owner Diageo to support his position, the UK-based firm is looking into the options available with it on whether to support the board resolution seeking his removal.<br /><br />Without fixing individual responsibility for the alleged lapses, USL board resolved it has "lost confidence" in Mallya and therefore it asked him to quit as Chairman and Director.<br /><br />Besides, USL has initiated a process to take action internally against other employees responsible for the alleged irregularities.<br /><br />The alleged irregularities also relate to possible violations of the Companies Act, which may lead to the Corporate Affairs Ministry separately looking into the matter.<br /><br />Concerned over the ongoing boardroom battle and the alleged lapses in the past, the minority shareholders of USL have also approached Sebi.<br /><br />Diageo has acquired 54.78 per cent stake in USL for about USD 3 billion, making it the controlling stakeholders, while the UB group firms continue to hold nearly 3 per cent stake.</p>