The Hindu Business Line : Mallya, Chhabria close to ending legal battle

THE UB group Chairman, Mr Vijay Mallya, and the Jumbo group Chairperson, Ms Vidya Manohar Chhabria, are engaged in direct talks to settle the longest-running corporate rivalry in the Indian liquor industry that pertains to the acquisition of Shaw Wallace & Co Ltd in 1985.

Mr Mallya, through two investment firms of which he has beneficial ownership, has been waging a legal battle against the Jumbo group, founded by the late Manu Chhabria, in a Hong Kong court to establish that he had partnered the latter in acquiring Shaw Wallace for $28 million from RG Shaw and Sime Darby.

Sources said that talks for resolving the dispute, which has practically divided the domestic liquor business into two camps, have gained momentum as both Mr Mallya and Mrs Chhabria are in direct negotiations.

"Mr Mallya is now doing the talking, but it has not reached the concluding stage yet," sources close to the UB Chairman said.

A Jumbo group spokesperson echoed similar sentiments, stating that negotiations "are progressing and we will wait for the result".

The out-of-court settlement could happen with Mr Mallya giving up claim over Shaw Wallace in return for damages and the investment he pumped in almost two decades ago.

However, both groups are chary of divulging figures.

The statements from both the camps come in the wake of industry buzz that both Mr Mallya and the estate of Manu Chhabria are close to putting an end to the acrimonious past.

When contacted, Mr Mallya told Business Line that he was not in a position to comment and that there was no deal at present.

It is learnt that the turning point in the troubled relationship came when Mr Mallya took the initiative to fly into Dubai in October last year for a personal dialogue with the Manu Chhabria family to resolve the dispute.

"Since then, both Mr Mallya and Ms Chhabria have been personally striving to live down the past. Ms Chhabria is striving to take the entire family along with her on the matter," sources added.

The bitter battle between Mr Mallya and the Chhabrias has spawned a series of legal cases - directly or through proxy - in various courts across the country.

Sources said that the legal teams of the camps were engaged in a drill to figure a way out of these cases as the two biggest families in the Indian liquor business veer closer than ever before to clinching a lasting settlement.

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