The flamboyant, businessman Vijay Mallya has announced his resignation as the Chairman of United Spirits Limited (USL). The company’s majority share-holder Diageo is now paying Rs. 515 crore to Mr. Mallya and relieving him of all duties and absolving him of all liabilities over alleged financial lapses made by his companies.
His now defunct airlines – Kingfisher, had allegedly defaulted on many loans; earning him the tag of a ‘wilful’ defaulter. He announced that he’ll spend some time with his children in England once the official procedures are over.
Having gotten himself the sweet Rs. 515 crore deal, he also got his son Siddharth a similar deal. Siddharth will continue to be the Director of the company that runs the RCB cricket team under USL.
Announcing his resignation, Mallya said, “The time has now come for me to move on and end all the publicised allegations and uncertainties about my relationship with Diageo and USL. I am pleased to have been able to agree terms with Diageo and USL. The agreement we have reached secures my family legacy.”
Having agreed to resign from all the boards of USL’s holdings; he will now remain ‘founder emeritus’ of USL and Chief Mentor of RCB.
Meanwhile; Diageo said it has “agreed to pay USD 75 million (Rs. 515 Crore) to Mallya in consideration for his resignation and termination of his appointment and governance rights and his relinquishing of the rights and benefits attached to his position as Chairman and non-executive director”, among other factors.
Diageo said it will pay USD 40 million (Rs. 275 Crore) of this amount immediately with the balance being payable in equal instalments over five years.
The payment is also for “his agreement to five-year global non-compete (excluding the UK), non-interference, non-solicitation and standstill undertakings, and his agreement that he and his affiliates will not pursue any claims against Diageo, USL and their affiliates.”
So his resignation is also with a bang eh?