United Breweries has put the onus on its Chairman Vijay Mallya to take cognizance of the regulator SEBI’s order barring him and his associates from holding the director’s post in any position.
In a statement to the BSE, the beer company UBL said that the SEBI’s order is a direction to Vijay Mallya and others in their respective capacities. “Compliance of the order as may be required in so far as it concerns United Breweries has to be carried out by Mallya himself,” it said.
Heineken, which holds 42.4 per cent in UBL and is the largest shareholder in the beer company, runs the operations on a day-to-day basis. Mallya and his associate companies own 31 per cent stake. Mallya continues to be the chairman and as per the article of association of the company, he can continue to hold the post as long as he wants.
UB also said that it is studying the order and will take legal advice on the next course of action to be taken in this regard.
United Spirits too, issued a statement to the bourses stating that it is also studying the order. USL has been asked to recover money from Mallya and his associates and report to the SEBI on the action taken in this regard within the next 21 days.