<p>In a big setback to Vijay Mallya, the former chairman of United Spirits (USL), market regulator Securities and Exchange Board of India (Sebi) has barred him from dealing in the securities market along with six others for illegal fund diversion.<br /><br /></p>.<p>Sebi also restrained Mallya and Ashok Capoor, the former president and managing director of United Spirits, from holding position as directors or key managerial persons of any listed company.<br /><br /> The other people who have been restrained from accessing the capital markets along with Mallya include Ashok Capoor, PA Murali, Sowmiyanarayanan, SN Prasad, Paramjit Singh Gill and Ainapur SR. Under the PWC-UK report, funds to the tune of Rs 655.55 crore were wrongly diverted while according to an E&Y report, the illegal fund diversion was Rs 1225.24 crore.<br /><br />“It appears that Mallya in his capacity as chairman of USL was instrumental in the diversion of funds from USL. In his endeavour to supply funds from USL to various companies/entities of the UB Group including Kingfisher Airlines (KFA), he had exerted pressure on the aforementioned key management personnel (KMPs) to comply with his instructions and the same were complied with,” Sebi said in an order dated January 25.<br /><br />Under scanner<br /><br />Sebi has said that it is separately examining the February 25, 2016 settlement agreement between Vijay Mallya and Diageo as well as the aspect of change in control of USL.<br /><br />As stated earlier, by way of the settlement agreement entered into between Diageo and Mallya, Diageo agreed to pay $75 million to Mallya who in turn agreed to resign from his position as chairman and director of USL and also director in other USL group companies. Diageo and USL agreed with UBHL and Kingfisher Finvest India to terminate the shareholder's agreement entered into between the parties on November 9, 2013. The aspect of change in control of USL is also being examined separately by Sebi, the regulator added.</p>
<p>In a big setback to Vijay Mallya, the former chairman of United Spirits (USL), market regulator Securities and Exchange Board of India (Sebi) has barred him from dealing in the securities market along with six others for illegal fund diversion.<br /><br /></p>.<p>Sebi also restrained Mallya and Ashok Capoor, the former president and managing director of United Spirits, from holding position as directors or key managerial persons of any listed company.<br /><br /> The other people who have been restrained from accessing the capital markets along with Mallya include Ashok Capoor, PA Murali, Sowmiyanarayanan, SN Prasad, Paramjit Singh Gill and Ainapur SR. Under the PWC-UK report, funds to the tune of Rs 655.55 crore were wrongly diverted while according to an E&Y report, the illegal fund diversion was Rs 1225.24 crore.<br /><br />“It appears that Mallya in his capacity as chairman of USL was instrumental in the diversion of funds from USL. In his endeavour to supply funds from USL to various companies/entities of the UB Group including Kingfisher Airlines (KFA), he had exerted pressure on the aforementioned key management personnel (KMPs) to comply with his instructions and the same were complied with,” Sebi said in an order dated January 25.<br /><br />Under scanner<br /><br />Sebi has said that it is separately examining the February 25, 2016 settlement agreement between Vijay Mallya and Diageo as well as the aspect of change in control of USL.<br /><br />As stated earlier, by way of the settlement agreement entered into between Diageo and Mallya, Diageo agreed to pay $75 million to Mallya who in turn agreed to resign from his position as chairman and director of USL and also director in other USL group companies. Diageo and USL agreed with UBHL and Kingfisher Finvest India to terminate the shareholder's agreement entered into between the parties on November 9, 2013. The aspect of change in control of USL is also being examined separately by Sebi, the regulator added.</p>
