Finding prima facie evidence of non-compliance to various norms, including those on insider trading and corporate governance, the Securities Exchange Board of India (SEBI) has widened its probe into the dealings of Vijay Mallya-headed UB Group. This includes the group’s own shares and those with UK-based Diageo and other foreign players.
The capital markets watchdog may also seek information from other regulators in India and abroad, as also from the stock exchanges, even as it seeks to de-clog the complex transactions Mallya had entered into, including sale of stake and transfer of rights in his various group companies.
Details and clarifications have also been sought from all the parties concerned, including the present and erstwhile UB Group firms, as well as the foreign companies with whom Mallya had dealt with for sale of controlling stake in United Spirits Ltd., to Diageo, a senior official said.
SEBI began looking into Mallya-Diageo transactions last month, soon after the liquor baron inked a Rs. 515-crore ‘sweetheart deal’ to exit United Spirits, suspecting possible violations of corporate governance and other norms.
Regulatory sources said that SEBI had found prima-facie evidence of non-compliance to various transactions, while stepping up its cooperation with other regulators and agencies that are separately looking into alleged violations in relation to the massive loans taken by the erstwhile Kingfisher Airlines of UB Group. A huge controversy erupted after Mallya left India within days of his ‘exit deal’ with Diageo, which has already paid more than half of the total amount due to the businessman.
Detailed queries sent to Mallya, including about his possible return to India and the prima-facie evidence found by SEBI, did not elicit any response.
