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

EVEN after relocating to the UK, beleaguered businessman Vijay Mallya remains in “full control”, his UB group’s holding firm United Breweries Holdings Ltd (UBHL) has said.

UBHL also disclosed a total remuneration of about Rs 2.86 crore to Mallya, who moved to the UK earlier this year amid a row over several cases involving the erstwhile Kingfisher Airlines company, including over huge loan defaults. His payment has been withheld on the orders of India’s Income Tax Department.

In its latest annual report, released to shareholders, group holding firm UBHL said it has been without a managing director since April 17, 2014. In the interregnum it told shareholders ahead of the group’s AGM on September 29 that Vijay Mallya had acted as the principal officer of the company and retained full control over its affairs, through the appropriate delegation of duties to various executives who reported to him on a regular basis.

UBHL has disclosed fees totalling Rs 3.2 lakh to Mallya for attending board or committee meetings. Out of this, a payment of sitting fees totalling Rs 1.6 lakh remained restrained by order of the case’s Tax Recovery Officer.

But the firm explained that Mallya had also received some remuneration from two overseas subsidiaries of UBHL.

It announced: “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.”

UBHL added that Vijay Mallya’s son Sidhartha had ceased to be a director of the company with effect from March 31, 2016.

Giving details of various cases proceeding through the India courts, UBHL said that under the Prevention of Money Laundering Act, in June India’s Enforcement Directorate (ED) had provisionally attached an order against the company’s immovable properties in Bangalore and Mumbai in connection with the investigation against Mallya, Kingfisher and others. The group said it was consulting legal counsel over the affair and what steps to take next.

“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.