There was a time when he used to be called ‘the king of good times’. Today, the Forbes has downgraded him to a former billionaire. Booze baron Vijay Mallya has been finally booked by ED for several money laundering cases.
Here we bring you some facts on how he lost his fortune.
The financial irregularities – The Company’s board had already begun the process to remove Mallya as the chairman because of irregularities, however, Mallya had denied all the allegations.
Transfer of control to Diageo – Mallya had sold most of his shares in United Spirits. He had also given the management control to Diageo and had even resigned from the post of Chairman in the company’s board.
Diageo’s ownership – As soon as Mallya resigns, Diageo will cut all ties with him and will take full management ownership. At present, the company owns about 55% of United Spirits, which has 39% of the Indian spirits market.
No personal liability for earlier inquiry – Diageo has also agreed to drop all claims which are connected to extremely serious alleged financial irregularities under Mallya’s leadership in United Spirits.
$75 million payment – As a part of the agreement, Diageo will pay $75 million (Rs 515 crore). Out of the whole amount Mallya will get 40 million immediately, while the remaining sum will be paid in the installments over a period of five years.