United Breweries asks Mallya to step down from board

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New Delhi : In a huge jolt to beleaguered liquor baron Vijay Mallya, the board of United Breweries asked him to step down as its non-executive chairman. The order came after watchdog Sebi asks to bar Mallya from holding directorship in any listed company.

United Breweries’ Company Secretary Govind Iyengar, emailed their decision to Mallya saying that in the absence of any stay or vacation of the Sebi order, the board is compelled to request you to step down from the board with immediate effect.

A copy of the e-mail along with extracts of the minutes of  board meeting was submitted to the BSE.

The board deliberated on the matter and also reviewed the legal opinions obtained in this regard.

Last month, Sebi had banned Mallya and six former officials of United Spirits Ltd (USL) from securities markets in a case related to illegal fund diversions, while probe is on into the role of auditors and change of control at the company.

Mallya and the six others were also restrained from holding directorship in any listed company.