Mumbai: United Spirits Limited (USL), owned by British beverage giant Diageo, on Saturday said it found evidence of funds diversion worth Rs 1,225 crore from the company when it was managed by Vijay Mallya.
In a statement to the stock exchanges, United Spirits said a follow-up investigation by E&Y found that Mallya diverted funds to Kingfisher Airlines, Force India Ltd and Watson Ltd. The E&Y report will now be shared with Indian law enforcement authorities and regulators for further action.
An earlier investigation by PricewaterhouseCoopers (PwC) UK was placed before the USL board in April 2015 which had asked Mallya to step down. Mallya, however, refused to do so and had trashed the investigation by PwC saying Price Waterhouse (PW) India cannot sign the accounts and later conduct an “independent” investigation. Mallya also questioned the due diligence conducted by Diageo before taking over the company.
Diageo later signed a peace deal with Mallya and paid him an additional $75 million. Diageo had taken over the company in November 2012.
USL officials along with Mallya are currently under investigation of the Enforcement Directorate (ED) for funds diversion from India to tax havens abroad.
09/07/16 Dev Chatterjee/Business Standard
To Read the News in full at Source, Click the Headline
In a statement to the stock exchanges, United Spirits said a follow-up investigation by E&Y found that Mallya diverted funds to Kingfisher Airlines, Force India Ltd and Watson Ltd. The E&Y report will now be shared with Indian law enforcement authorities and regulators for further action.
An earlier investigation by PricewaterhouseCoopers (PwC) UK was placed before the USL board in April 2015 which had asked Mallya to step down. Mallya, however, refused to do so and had trashed the investigation by PwC saying Price Waterhouse (PW) India cannot sign the accounts and later conduct an “independent” investigation. Mallya also questioned the due diligence conducted by Diageo before taking over the company.
Diageo later signed a peace deal with Mallya and paid him an additional $75 million. Diageo had taken over the company in November 2012.
USL officials along with Mallya are currently under investigation of the Enforcement Directorate (ED) for funds diversion from India to tax havens abroad.
09/07/16 Dev Chatterjee/Business Standard
0 comments:
Post a Comment