The board of United Breweries on Wednesday asked Vijay Mallya to step down as its non-executive chairman following a SEBI order which barred the embattled businessman from holding directorship in any listed company.
A fortnight ago, Sebi banned Mallya and six former officials of United Spirits from securities market in a case related to alleged fund diversions.Meanwhile probe is on into the role of auditors and change of control at the company.
The decision was taken at the board’s meeting on Wednesday in Mumbai.
In an e-mail to Mallya, United Breweries’ company Secretary and Senior Vice-president Govind Iyengar said that in the absence of any stay or vacation of the SEBI order, the “board is compelled to request you to step down from the board” with immediate effect.
“The independent directors along with other directors present at the meeting held on February 6, 2017 had resolved not to send the notices and agenda relating to board meetings and/or other privileged information to Vijay Mallya till such time he obtains stay of the SEBI order,” the company added.
Sebi also restrained Mallya and Ashok Capoor, former managing director of United Spirits, from holding the post of director or key managerial position at any listed company.
On Tuesday, the Karnataka HC ordered the winding up of United Breweries (Holdings) Ltd (UBHL), the parent company of the UB Group, for recovering dues payable by UBHL-promoted defunct Kingfisher Airlines Ltd. Mallya owns 52.34 per cent in United Breweries Holdings Ltd.
