Diageo Sues Indian Tycoon Vijay Mallya Over $40 Million Payout
By Team Legistify / 2017-11-21

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Weeks before a London extradition hearing, Indian tycoon Vijay Mallya faces a second legal battle after Diageo Plc sued to recover a $40 million payment made when he was ousted from United Spirits Ltd. last year.

Diageo filed the suit in London Tuesday after setting out the grievances in its annual report in August. The drinks giant claims Mallya breached a $75 million agreement, 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 seeking about $141 million over questionable payments made by companies affiliated with Mallya. His son, Sidhartha, is also named in the suit.

Picture Courtesy- India.com

Diageo has amassed a 55 percent stake in United Spirits since it first purchased a share of the Indian whiskey producer in 2013. It battled for months to oust Mallya as chairman after an internal inquiry alleged he’d diverted funds to other companies under his control. Last year, the British distiller agreed to pay Mallya $75 Million over five years to leave the company and not compete or interfere with it for five years. As part of the arrangement, Diageo also said it would release Mallya from liabilities flagged in the internal report.


Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Related Posts

Read More News on Similar Topics