Mallya in 'full control' even after moving to UK: UB Group


New Delhi, Sep 18 (PTI): Beleaguered businessman Vijay Mallya remains in "full control" even after relocating to UK, his UB group's holding firm United Breweries Holdings Ltd has said while disclosing remuneration totalling Rs 1.6 crore.

Group company United Breweries Ltd, in which co-promoter Heineken has been hiking stake, has also disclosed total remuneration of about Rs 2.86 crore to Mallya, who moved to the UK earlier this year amid a furore over various cases involving erstwhile Kingfisher Airlines including about huge loan defaults. However, this payment had to be withheld pursuant to the orders of the Income Tax Department.

In its latest annual report, released to shareholders ahead of their Annual General Meeting on September 29, the group holding firm UBHL said it has been without a Managing Director since April 17, 2014.

"In the interregnum, the Chairman of the Board, Vijay Mallya is acting as the Principal Officer of the company and reviewed the performance of the Company at the Board Meetings held during the year.

"Even after his relocating to London, he has full control over the affairs of the company through appropriate delegation of duties to various operating executives who report to him on a regular basis," it said.

Giving details of the remuneration paid to the directors, UBHL has disclosed fees totalling Rs 3.2 lakh to Mallya for attending board or committee meetings. Out of this, payment of sitting fees totalling Rs 1.6 lakh has been restrained by Order of the Tax Recovery Officer dated November 24, 2015, UBHL said.

However, Mallya received remuneration totalling about Rs 1.6 crore from two overseas subsidiaries of UBHL. "The Chairman of the company has received remuneration from two subsidiaries, amounting to USD 120,000 (previous year USD 120,000) and British Pound 89,600 (previous year GBP 89,600) during the year 2015-16," it said.

UBHL also said Vijay Mallya's son Sidhartha ceased to be a director of the company with effect from March 31, 2016. The company's operations comprise primarily of holding of strategic investments and other securities, international trade, development of real estate, sale and rental of constructed premises including residential property of Kingfisher Towers, licensing of trademarks, advancing of loans and provision of guarantees.

Interestingly, it also disclosed having been given "the Export Excellence award" by a Karnataka business chamber.' UBHL said it "is constrained by various restraint orders of the High Court of Karnataka as a result of which revenue yielding business proposals like franchising out the Kingfisher brand owned by the Company and renting out vacant space at UB City, Bangalore could not be implemented."

"The operations of the company was further affected due to the provisional attachment of properties and shares by the Directorate of Enforcement consequent upon their investigation in a purported money laundering case of Kingfisher Airlines Limited. Continuing efforts are being taken to have the temporary embargo lifted which would augment increasing revenue streams."

Giving details of various cases, UBHL said the Enforcement Directorate (ED) had provisionally attached in June the immovable properties of the company based in Bangalore and Mumbai under Prevention of Money Laundering Act for a period of 180 days in connection with investigation against Mallya, Kingfisher and others.

"Pursuant to a Show Cause Notice dated July 11, 2016 received from the Adjudicating Office in this regard, the company is in consultation with its legal counsels for taking appropriate steps that may be required including but not limited to defending the case before the Adjudicating Authority in Delhi.

"As part of the investigations of the affairs of the Kingfisher Airlines Limited, the company has cooperated with all the Investigating Agencies by providing all relevant information, records, data and facts as and when required by the said agencies," it added.

In its annual report, United Breweries Ltd (UBL) has disclosed sitting fees totalling Rs 2.9 lakh and commissions worth Rs 2.83 crore to Mallya, but added that "pursuant to the notice received from the Income Tax department, the company has withheld payments effective March 2016".

At its upcoming AGM, UBHL will interestingly seek approval from the shareholders for a proposal for entering into a a pact for purchase of goods or materials from them (including purchase of beer) from UBL for an estimated amount of up to Rs 150 crore for the current financial year 2016-17.

  

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Comment on this article

  • SMR, Karkala

    Tue, Sep 20 2016

    Mr.Kamath,

    No bank defaulter can fly without the knowledge of Ministry of Home affairs.

    Every citizen willing to travel abroad need to be cleared by immigration.

    Indian nationalised bank has waived nearly of nearly 6 lakh crores to the capitalist which in turn control the government policy.

    The law can't be biased for farmer who is genuinely in losses and willful defaulter.

    If government is seriously interested in recovering black money it only need to issue 'red corner' notice alert interpol.

    This 'catch me if you can' only raises doubt about the BJP which came to power on the promise of eliminating corruption.

    Jai Hind

    DisAgree Agree Reply Report Abuse

  • Vincent Rodrigues., Frazer Town,Bangalore

    Mon, Sep 19 2016

    Mallya is a professional and top business tycoon,magnet from generations.He know how to handle the situations better.

    DisAgree Agree [2] Reply Report Abuse

  • Roshan, Bantwal

    Mon, Sep 19 2016

    Feku said about getting back black money. If he dares let him get money from Vijay Mallya...

    DisAgree [1] Agree [2] Reply Report Abuse

  • steven, dxb

    Mon, Sep 19 2016

    As far as BJP is in power Mallya is in control. Maya ella maya kanoo!!

    DisAgree [2] Agree [5] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Mon, Sep 19 2016

    Jossey,

    No doubt.
    Only big big speeches!
    Result is already known by the public.
    Any ways, Babaramdev achieved his ambitions . (in many ways)

    DisAgree [1] Agree [7] Reply Report Abuse

  • NR, mangaluru

    Mon, Sep 19 2016

    By the way MALLYA and RAVI Shastri
    they are from Mangalore,
    they are Brilliants in their fields.

    DisAgree [1] Agree [8] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Sep 19 2016

    India is a Banana Republic.
    Can anyone challenge my statement ...

    DisAgree [5] Agree [13] Reply Report Abuse

  • SMR, Karkala

    Mon, Sep 19 2016

    Mallya is in full control of 'UB'.And Mallya is in full control of PM Modi government.

    How does someone on Humanitarian mission escape without the knowledge of Home ministry?

    DisAgree [6] Agree [13] Reply Report Abuse

  • Kamath, Udupi/bangalore

    Mon, Sep 19 2016

    There was no barrier that would have prevented him from travelling outside of india. Loans were given to the company and not to him (Hope you get Limited Liability concept). Its for the banks for decide which company to extend the credit. Unless it is proven he was a wilful defaulter (which was not the case at the time of his flying), no govt could have prevented him from flying.

    However we could ponder who gave loans to the company knowing its financial health & what factors played part in those decisions

    DisAgree [2] Agree [6] Reply Report Abuse

  • Shankar, Mangalore

    Mon, Sep 19 2016

    Sir,
    Even banks can not be blamed completely. They too do a risk assessment which could fail later due to unpredictable events. In this case for example, Kingfisher was a brand of future at that time. The then Aviation minister's extreme lenience towards another Airline made him to put deliberate obstacles on the growth path of Kingfisher Airlines.
    Much awaited alliance of KFA with Ethihad never took off.
    I can only say, UPA is the sole reason for the fall of KFA and Malya. UPA could be blamed for changing a patriot into an absconding defaulter.

    DisAgree [1] Agree [1] Reply Report Abuse

  • Kamath, Udupi/bangalore

    Mon, Sep 19 2016

    Cant agree he is a patriot. In my view he is an overrated businessman,one who believed in partying hard without working hard, fraudster and believed in all types of pleasures.

    DisAgree Agree [1] Report Abuse

  • Dr.S.Kamath, Mumbai

    Sun, Sep 18 2016

    I dont understand why make such a big fuss about Mallya.He is ready to settle the loan .Banks should agree for the settlement take money and leave the case .United breweries is such a big company .All the banks will get all the money I sincerely believe.In many countries specially in Europe Debt is not a crime.Debt settlement is the only option.

    DisAgree [4] Agree [17] Reply Report Abuse

  • John, Udupi

    Sun, Sep 18 2016

    Unless Centre is hand in glove with Vijay Mallya, this is not possible!. Thats why only Rs. 1000 crore black money d so far! Amnesty ends on 30th Sept midnight!. people have to be arrested and put behind bars for adding so many zeros after 1!!!.

    DisAgree [5] Agree [9] Reply Report Abuse

  • Jagdish, Mumbai.UAE

    Sun, Sep 18 2016

    Shameless tycoon..

    DisAgree [11] Agree [10] Reply Report Abuse

  • Preetham, Bantwal

    Sun, Sep 18 2016

    ITS NOT POSSIBLE TO BECOME UNCAUGHT POWERFUL MAN IN THE PLANET WITHOUT GOVERNMENT BODIES INVOLVED IN BOTH COUNTRIES.I BET HE GOT MANY PEOPLE COVERING HIM FROM BOTH SIDE UK AND INDIA. HOW CAN PERSON WALK OUT OF THE COUNTRY WITHOUT SUPPORT OF THE GOVERNMENT???

    DisAgree [3] Agree [20] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Sep 18 2016

    Lalit Modi & Vijay Mallya are in full control after making India ULLU ...

    DisAgree [3] Agree [29] Reply Report Abuse

  • sri, Karkala

    Sun, Sep 18 2016

    Award given by Karnataka government?
    Congress bhakths any comments?

    DisAgree [34] Agree [9] Reply Report Abuse

  • ISMAIL K PERINJE, PERINJE

    Sun, Sep 18 2016

    SRI,

    Read properly....KARNATAKA BUSINESS CHAMBER.....Not Govt of Karnataka.

    By the by previous day of MALLYA's escape Mallya met JOOTLY!!!What you say?Apart from that how Modi allowed him to escape?Paid media did not utter a word so far?Did he escape in SHIP in container?

    DisAgree [6] Agree [28] Reply Report Abuse

  • geoffrey, hat hill

    Sun, Sep 18 2016

    Your question can be best answered by whoever revoked the CBI instruction to immigration to detain him if tried to flee. And FYI, immigration department takes orders from central government and not from Karnataka Sarakara.

    DisAgree [3] Agree [29] Reply Report Abuse

  • munna, nitte/karla

    Mon, Sep 19 2016

    Award to be given to those who have mental imbalance for writing non sense comments.

    DisAgree [2] Agree [13] Reply Report Abuse

  • John, Udupi

    Mon, Sep 19 2016

    Sri, you just concentrate on cow, Siddhu, Kejri, Sonia, Rahul, AAP, Congress!!!. There pak terrorists have killed 17 of our soldiers and you are not seen commenting there!. Ask Modiji and Parrikar tk resign the way you do for others!!!!!

    DisAgree [4] Agree [11] Reply Report Abuse

  • akhilesh, Mangalore/Bangalore

    Thu, Sep 22 2016

    @ John- Just like how you and few of our sickulars just concentrate on cow,dalit,amit shah, modi,yeddy,rss and VHP.....its the same way SRI is commenting as well...did youjr beloved dongi team resign when mumbai was hijacked for 48 hours...????? remember innocent people were killed mercilessly...unlike a soldier who is signed up to face grave situations which he cant foresee or give reasons....iam not putting our soldiers down here....but the mentality of few of our sickulars is just namophobia...nothing else...

    DisAgree Agree [1] Reply Report Abuse

  • Ashok Pinto, New York

    Mon, Sep 19 2016

    comparing to feku , mallya is better than him.. sri .. grow up...!

    DisAgree [4] Agree [15] Reply Report Abuse


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Title: Mallya in 'full control' even after moving to UK: UB Group



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