New Delhi : UK’s Diageo group-controlled United Spirits alleged irregularities and potential violations of law in diversion of funds by the firm’s erstwhile promoter Vijay Mallaya-led UB Group and said it is initiating process to recover dues totaling to Rs 1,337 crore.
In its first quarter earnings statement, USL said certain pre-existing loans, deposits or advances exited on its books as on March 31, 2013 which were consolidated into as unsecured loan to United Breweries (Holdings) Ltd. Such dues, together with an interest of 9.5 per cent per annum, aggregated to Rs 1,337.40 crore.
After Diageo gained control of the firm, an inquiry was initiated which has found that between 2010 and July 2013 transactions showed lower exposure of the company to UBHL than what actually existed. “Prima Facie, this indicates various improprieties and potential violations of provision” and the listing agreements signed by the company with various stock exchanges in India on which it is listed,” the company said in a filing.
United Spirits reported a stand-alone net profit of Rs 19.92 crore for the first quarter ended June on the back of higher sales.
