Bengaluru business club divided on Mallya case - Times of India

The author has posted comments on this articleShilpa Phadnis, TNN | Apr 29, 2015, 05.27AM IST

Even as Vijay Mallya puts up a fight to retain the chairmanship of United Spirits, defying a boardroom decision, the perception in Bengaluru's business club about Mallya is divided. (File photo)

BENGALURU: Even as Vijay Mallya puts up a fight to retain the chairmanship of United Spirits, defying a boardroom decision, the perception in Bengaluru's business club about Mallya is divided.

T V Mohandas Pai, chairman of Manipal Global Education, said the agreement between Vijay Mallya and Diageo (the current owner of USL) should be enforced. "They (Diageo) did a four-month due diligence in 2012. PwC should disclose a fresh set of findings that hasn't been shared before. The contractual agreement is sacrosanct and they are behaving like a big bad wolf trying to oust an Indian entrepreneur. If what Mallya is saying is true, it indicates that Diageo is behaving like a big bully," said Pai.

Rajya Sabha MP Rajeev Chandrasekhar said the biggest impediment to large-scale foreign investment is lack of governance in many promoter-dominated companies. "It is unfortunate that the dispute is being played out in the public domain. Rules and laws must prevail," he said.

UK-based Diageo first acquired a 25% stake in USL from Mallya-led UB Group in late 2012. Now it owns 54% stake and controls the board. The USL board last week asked Mallya to step down after "various improprieties and legal violations" were found in a probe conducted by PricewaterhouseCoopers (PwC) into past transactions between USL and Mallya's UB Group firms. Mallya has described the investigation as full of "half-truths and twisted facts."

Geetanjali Kirloskar, chairperson of Sakra World Hospitals, said, "Mallya has a standing in the industry and he has created a brand value. Raking up issues after the commitment doesn't appear to be a prudent business practice. We value him as a friend."

Capt G R Gopinath, who sold his low-cost airline Air Deccan to Mallya-backed Kingfisher, said nobody should cast aspersions on Mallya. "We are privy to the information provided by Diageo. The matter is being investigated. I think an independent investigation can determine Mallya and Diageo's claims," he said.

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