Studying SEBI order on alleged fund diversions: USL

Diageo-controlled United Spirits Ltd (USL) today said it is studying the SEBI order asking about the steps taken to recover the funds allegedly diverted by former Chairman Vijay Mallya and six former directors, who have been banned from accessing the securities market.
In its order on January 25, SEBI had also aksed USL to file a report with regard to action taken against Mallya and the directors within 21 days.
The market regulator asked USL to report steps taken to recover from "Mallya and the companies to whom such funds were wrongly diverted, which have been reported as diversion under the PWCUK Report - Rs 655.55 crore and under the E&Y Report - Rs 1,225.24 crore".

"SEBI has issued an ad interim ex-parte order asking the company to respond to SEBI in the matter within 21 days of the receipt order. The company is studying the order and will submit the responses to SEBI by due date," USL said in a clarification to BSE.
SEBI had restrained Mallya along with Ashok Capoor, P A Murali, Sowmiyanarayanan, S N Prasad, Paramjit Singh Gill and Ainapur SR from the securities market and also from "buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly" till further directions.
Mallya and Capoor have been restrained from "holding position as directors or key managerial persons (KMPs) of any listed company".

SEBI had also asked Mallya and others to file their replies within 21 days from the date of receipt of its order.

"They may also indicate in their replies whether they wish to avail an opportunity of personal hearing in the matter," the market regulator had said in its order.
Yesterday Mallya, in a series of tweets, had called the allegations of fund diversion concerning now-defunct Kingfisher Airlines a "joke" and said he is getting used to "witch hunts coming from all directions with no legal basis whatsoever".
"CBI alleges diversion of funds OUT of Kingfisher Air. SEBI alleges diversion of funds from USL INTO Kingfisher Air. What joke is this?," Mallya had tweeted.

He has claimed "innocence" in the alleged funds diversion related to the now-defunct airline, saying nothing has come out finally against him from a court.