Weeks earlier than a London extradition hearing, Indian magnate Vijay Mallya faces a 2d prison battle after Diageo sued to get well a $40 million cost made when he used to be ousted from United Spirits ultimate yr.
Diageo filed the suit in London on Tuesday after surroundings out the grievances in its annual record in August.
The drinks large claims Mallya breached a $75 million settlement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016. It's also in quest of about $141 million over questionable bills made via corporations affiliated with Mallya. His son, Sidhartha, is also named in the suit.
Diageo has gathered a 55% stake in United Spirits since it first purchased a proportion of the Indian whiskey producer in 2013. It battled for months to oust Mallya as chairman after an inside inquiry alleged he'd diverted finances to different corporations beneath his keep an eye on. Last yr, the British distiller agreed to pay Mallya $75 million over 5 years to leave the company and now not compete or intrude with it for 5 years. As part of the association, Diageo also mentioned it will release Mallya from liabilities flagged in the inside record.
"Diageo is pursuing substantial repayment and compensation from Vijay Mallya and certain of his affiliate companies," a spokeswoman for Diageo mentioned in a remark. "They include seeking compensation from Mallya for breaches of the agreements announced in February 2016 that ended his association with United Spirits."
The suit comes as Mallya gears up for an extradition hearing in London subsequent month over allegations he committed a billion-dollar fraud.
The 61-yearold used to be arrested in London in April on a warrant issued via Indian government. A consortium of 17 banks accuses him of willfully defaulting on more than $1.4 billion in debt accrued via Kingfisher Airlines —an airline he founded in 2005 and close down seven years later.
Mallya, who has been launched on bail, mentioned in a telephone interview Friday the Diageo suit used to be being reviewed via his lawyers and he would defend any motion against him. He has also denied the allegations associated with the Indian fraud charges.
Diageo filed the suit in London on Tuesday after surroundings out the grievances in its annual record in August.
The drinks large claims Mallya breached a $75 million settlement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016. It's also in quest of about $141 million over questionable bills made via corporations affiliated with Mallya. His son, Sidhartha, is also named in the suit.
Diageo has gathered a 55% stake in United Spirits since it first purchased a proportion of the Indian whiskey producer in 2013. It battled for months to oust Mallya as chairman after an inside inquiry alleged he'd diverted finances to different corporations beneath his keep an eye on. Last yr, the British distiller agreed to pay Mallya $75 million over 5 years to leave the company and now not compete or intrude with it for 5 years. As part of the association, Diageo also mentioned it will release Mallya from liabilities flagged in the inside record.
"Diageo is pursuing substantial repayment and compensation from Vijay Mallya and certain of his affiliate companies," a spokeswoman for Diageo mentioned in a remark. "They include seeking compensation from Mallya for breaches of the agreements announced in February 2016 that ended his association with United Spirits."
The suit comes as Mallya gears up for an extradition hearing in London subsequent month over allegations he committed a billion-dollar fraud.
The 61-yearold used to be arrested in London in April on a warrant issued via Indian government. A consortium of 17 banks accuses him of willfully defaulting on more than $1.4 billion in debt accrued via Kingfisher Airlines —an airline he founded in 2005 and close down seven years later.
Mallya, who has been launched on bail, mentioned in a telephone interview Friday the Diageo suit used to be being reviewed via his lawyers and he would defend any motion against him. He has also denied the allegations associated with the Indian fraud charges.
Diageo sues Mallya over $40m payout in United Spirits deal
![Diageo sues Mallya over $40m payout in United Spirits deal]()
Reviewed by Kailash
on
November 18, 2017
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