United Breweries Ltd (UBL) had stopped sharing company-related information with erstwhile chairman Vijay Mallya since February after Sebi restrained the fugitive liquor tycoon from holding position as director or key managerial personnel in any listed firm. According to a regulatory filing by UBL, although the cessation of Mallya’s directorship was communicated to authorities last week, he was asked to step down from the board much earlier this year.
The independent directors at their meeting on February 6 had decided not to send notices and agenda related to board meetings and other “privileged information” till the time Sebi order remained in force, it said.
Two days later, the company’s board of directors met and took on record the minutes of meetings of the independent directors.
“Effectively through these measures, Mallya was restrained from acting as a director in the company, in accordance with Sebi order. Further, by a separate communications, Mallya was requested to step down from the board with immediate effect until the Sebi order is stayed or vacated,” UBL said.
As the Sebi order was not vacated, in July, the board had asked Mallya and his associate companies to nominate a director in his place in terms of article of association of the company.
On August 4, UBL said Sebi issued another letter observing that Mallya still continued to be disclosed as non-executive director and chairman of UBL on the BSE website.
The markets regulator had sought information on what steps were taken regarding the order prohibiting him from holding any position as director in any listed company.
In response to that, UBL said it communicated to Sebi on August 10 steps taken by it, with the board authorising filing of requisite forms and intimations with the Registrar of Companies and other authorities notifying Mallya’s cessation from holding position of director in the company.
In January, Sebi had also restrained Mallya and six others from the securities market and “buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly” till further directions.
The regulator’s order was issued close on the heels of CBI naming Mallya, Kingfisher Airlines and eight others in a chargesheet related to a loan default case.
Mallya, whose now-defunct Kingfisher Airlines owes more than Rs 9,000 crore (including interest) to various banks, had fled India for London on March 2, 2016.
The CBI has two cases against him — one related to the IDBI Bank case and the other related to a loan default of over Rs 6,000 crore filed on the basis of a complaint from a State Bank of India-led consortium. He is facing extradition to India.