Vijay Mallya resigns as Chairman of USL, receives USD 75 million from Diageo
His resignation came after the company's board alleged fund misplacement against him, allegations Mallya had denied.
Mallya's resignation also saw a plunge in USL's shares by as much as six percent on Friday.
"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. Accordingly, I am resigning (from) my position with immediate effect," Mallya said in a statement on Thursday.
Mallya will also receive USD 75 million from Diageo as per the agreement.
He will be receiving USD 40 million on Friday and the next 35 million in a installment over the next five years.
The liquor baron had sold most of his shares in the USL to London based Diageo in 2012, amidst turbulent financial conditions.
However, Mallya's son Siddharth will remain in the board and cannot be removed from it for the next two years.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
