Vijay Mallya quits royal challenge, hopes to revive spirits in UK

February 25, 2016

Bengaluru, Feb 25: Troubled tycoon Vijay Mallya on Thursday resigned as the chairman of United Spirits (USL), the country's largest liquor company founded by his late father Vittal Mallya, almost a year after its board had asked him to step down, citing certain inappropriate dealings which occurred on his watch. Former Hindustan Unilever veteran M K Sharma has been appointed as the new non-executive chairman of USL, now controlled by London-based Diageo Plc.

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"The time has now come for me to move on and end all the publicised allegations and uncertainties about my relationship with Diageo and United Spirits Limited," Mallya said. "I am pleased to have been able to agree terms with Diageo and United Spirits Limited. The agreement we have reached secures my family legacy," he added. Vittal Mallya had set up USL soon after India's Independence. Mallya said he has decided to spend more time in England with his children, including eldest son Siddharth Mallya, who is pursuing studies in London. Mallya had earlier told TOI that he was relinquishing control of his group companies as there was no family succession plan. His son, who briefly dabbled in business, had then relocated to Los Angeles to pursue an acting career.

Mallya's exit is a sordid story of a flamboyant industrialist walking away from his flagship as a fallout of the disastrous foray into aviation—the grounded Kingfisher Airlines which saddled the group with Rs 7,000-crore debt. The latest development unfolded even as SBI and Punjab National Bank declared him a wilful defaulter, which threatened to jeopardize banking ties of the companies on which he remains a board member.

Mallya, who turned 60 last December, has signed a five-year non-compete agreement and will desist from buying additional shares in USL. Mallya had agreed to sell controlling interest to Diageo, paving the way for a$3-billion takeover in 2012. However, ties between Mallya and Diageo soured soon thereafter with the board taking note of certain related party transactions, which were rejected by the shareholders.

USL will pay Mallya $75 million over the next five years towards non-compete and non-interference agreements struck as part of the latter's exit deal. The initial tranche of $30 million will be paid in the first year. USL will also allow its former chairman to buy back some of the real estate assets, including Niladri mansion in South Mumbai, which was one of his personal homes, at the prevailing market value. Mallya continues to hold a 4% stake though almost all of this is pledged to various lenders of Kingfisher.

"This agreement is an affirmative action by which Vijay Mallya is disassociating himself from the company completely," Abanti Shankaranarayanan, a spokesperson for Diageo, said in a late night conference call. This rescues the company from all contingent liabilities, safeguards its banking relationships and enables it to focus on performing better in India's $300-billion liquor market, she added.

In April last year, USL board, controlled by Diageo, sought Mallya's resignation stating it had lost confidence in him continuing as chairman of the company due to alleged financial irregularities. Mallya had refused to step down, citing contracts between him and Diageo and had threatened to move courts. But his resistance was seen as a losing battle as Diageo controlled the board and held a 55% stake in the company.

Mallya had indicated in USL's AGM in November he would consider retirement after turning 60. Mallya's exit agreement also settles all claims concerning the alleged irregularities disclosed by USL in April.

Mallya, however, continues to remain as the chairman of United Breweries (UBL) in which he has allowed Dutch beer giant Heineken to emerge as the largest shareholder. Another company UB Holdings, the parent of Kingfisher Airlines, has no significant revenue streams except some rent-yielding commercial real estate assets.

Comments

Zoharab
 - 
Friday, 26 Feb 2016

Please request Mallya to clear his loans & salaries of KF staffs. The goto UK & settle. He still does show off with poor people's money....Very sad nobody is bothered.

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December 5,2025

Mangaluru: In a significant step to curb online hate and intimidation, Mangaluru City Police have registered a suo motu case against multiple Instagram accounts accused of circulating alleged provocative and threatening content.

While monitoring social media activity on Tuesday, Kankanady Town PSI Anitha Nikkam identified the Instagram handle ‘team_targetttt_900’ for posting a hate message alongside images of lethal weapons. Another account, ‘team_nagara_900’, allegedly shared a threatening post targeting activist Bharath Kumdelu, tagging additional pages such as KARAVALI-OFFICIAL.

Several other accounts — including ‘immu_bhai.fan’, ‘target_boy_900’, ‘kings_of_manglore’, ‘team_target_boys.900’, ‘arshad_mangalore’, ‘target_ka19_ullal’, ‘team_target__’, ‘troll_tigersz_900’, ‘tr_group_900’, and ‘team_target_900’ — are also under scrutiny for spreading similar inflammatory material, police said.

Authorities have urged citizens, especially young social media users, to report suspicious pages and avoid engaging with groups that glorify violence or threaten individuals. Online hate can quickly escalate into real-world harm, and police stress that sharing or promoting such content can attract legal consequences.

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December 4,2025

Mangaluru: Chaos erupted at Mangaluru International Airport (MIA) after IndiGo flight 6E 5150, bound for Mumbai, was repeatedly delayed and ultimately cancelled, leaving around 100 passengers stranded overnight. The incident highlights the ongoing country-wide operational disruptions affecting the airline, largely due to the implementation of new Flight Duty Time Limitations (FDTL) norms for crew.

The flight was initially scheduled for 9:25 PM on Tuesday but was first postponed to 11:40 PM, then midnight, before being cancelled around 3:00 AM. Passengers expressed frustration over last-minute communication and the lack of clarity, with elderly and ailing travellers particularly affected. “Though the airline arranged food, there was no proper communication, leaving us confused,” said one family member.

An IndiGo executive at MIA cited the FDTL rules, designed to prevent pilot fatigue by limiting crew working hours, as the cause of the cancellation. While alternative arrangements, including hotel stays, were offered, about 100 passengers chose to remain at the airport, creating tension. A replacement flight was arranged but also faced delays due to the same constraints, finally departing for Mumbai around 1:45 PM on Wednesday. Passengers either flew, requested refunds, or postponed their travel.

The Mangaluru delay is part of a broader crisis for IndiGo. The airline has been forced to make “calibrated schedule adjustments”—a euphemism for widespread cancellations and delays—after stricter FDTL norms came into effect on November 1.

While an IndiGo spokesperson acknowledged unavoidable flight disruptions due to technology issues, operational requirements, and the updated crew rostering rules, the DGCA has intervened, summoning senior airline officials to explain the chaos and outline corrective measures.

The ripple effect has been felt across the country, with major hubs like Bengaluru and Mumbai reporting numerous cancellations. The Mangaluru incident underscores the systemic operational strain currently confronting India’s largest carrier, leaving passengers nationwide grappling with uncertainty and delays.

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December 2,2025

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Udupi, Dec 2: A wave of regional pride is sweeping through Udupi district as Shagun S Verma Hegde, a talented Class 9 student from Christ King English Medium High School, Karkala, has been named the captain of the Indian National Team for the Under-15 Girls’ Volleyball Championship.

Shagun holds the unique distinction of being the sole player from Karnataka selected to represent the country in the prestigious international tournament. The championship, organized by the School Games Federation, is scheduled to take place in Shangluo, China, from December 3 to 13, where Shagun will lead the national squad.

A Remarkable Journey to the Top

Shagun’s selection is a testament to her dedication and exceptional skill on the court. Her journey included several rigorous rounds of selection:

•    She was the only player from Udupi district to qualify for the state-level selection camp.

•    Out of eight players from Karnataka who advanced to the national selection camp in Pune, Maharashtra, Shagun was the only one to secure a place in the final national squad.

•    The national camp saw participation from approximately 200 players, which was shortlisted to 23. Shagun not only made the final cut but was also ranked as the second-best player overall, solidifying her leadership role.

Shagun, who is the daughter of Sandesh Verma and Shruthiraj of Kallotte, Karkala, has trained under experienced coaches Santosh D’Souza, Jeevan D’Silva, Jairaj Poojary, and Ramesh. Her selection as the team captain has brought profound honour to her family, school, the Udupi district, and the entire state of Karnataka.

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