USL receives MCA notices for inspection of books

United Spirits has received a notice from the Corporate Affairs Ministry for inspection of its books in the wake of alleged violations of the companies law.
Following an inquiry, the ministry has issued notice to the company, its directors and officers, including former ones, dated January 11, 2016.
"The company has received a notice from the Ministry of Corporate Affairs (MCA) for an inspection under section 206(5) of the act of the books of accounts and other books and papers of the company," United Spirits Ltd (USL) has said.
According to the company, the ministry has sought explanations and comments asking "why action should not be initiated in relation to various contraventions alleged by the Joint Director under provisions of the act".

In a filing to stock exchanges on Wednesday, USL said it is in the process of responding to the notice, which was received subsequent to the quarter ended December 31, 2015.
"The company is cooperating fully with the authorities in relation to the same," the filing said.

In October last year, USL received a letter from the Enforcement Directorate seeking information and documents regarding its present and former joint ventures and wholly-owned subsidiaries abroad including USL Holdings Ltd (BVI) and its subsidiaries.
"The company has responded to the ED and provided the information sought and assured the authorities of such further cooperation as may be sought from them," the filing said.

Last year, Diageo had asked Vijay Mallya to step down as Chairman and Director of the Indian liquor firm for alleged fund diversion to Kingfisher and other UB Group entities.