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United Breweries stopped sharing company information with Mallya since Feb

The independent directors, on Feb 6, decided not to send 'privileged information' to Vijay Mallya

Press Trust of India  |  New Delhi 

Vijay Mallya in London on Tuesday. Photo: AP/PTI
Vijay Mallya in London. Photo: AP/PTI

Ltd (UBL) had stopped sharing company-related information with erstwhile chairman Vijay since February after restrained the fugitive tycoon from holding position as director or key managerial personnel in any listed firm.

According to a regulatory filing by UBL, although the cessation of Mallya's directorship was communicated to authorities last week, he was asked to step down from the board much earlier this year.

The independent directors at their meeting on February 6 had decided not to send notices and agenda related to board meetings and other "privileged information" till the time order remained in force, it said.

Two days later, the company's board of directors met and took on record the minutes of meetings of the independent directors.

"Effectively through these measures, was restrained from acting as a director in the company, in accordance with order. Further, by a separate communications, was requested to step down from the board with immediate effect until the Sebi order is stayed or vacated," said.

As the Sebi order was not vacated, in July, the board had asked Mallya and his associate to nominate a director in his place in terms of article of association of the company.

On August 4, said Sebi issued another letter observing that Mallya still continued to be disclosed as non- executive director and chairman of on the BSE website.

The markets regulator had sought information on what steps were taken regarding the order prohibiting him from holding any position as director in any listed company.

In response to that, UBL said it communicated to Sebi on August 10 steps taken by it, with the board authorising filing of requisite forms and intimations with the Registrar of and other authorities notifying Mallya's cessation from holding position of director in the company.

In January, Sebi had also restrained Mallya and six others from the securities market and "buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly" till further directions.

The regulator's order was issued close on the heels of CBI naming Mallya, and eight others in a chargesheet related to a loan default case.

Mallya, whose now-defunct owes more than Rs 9,000 crore (including interest) to various banks, had fled India for London on March 2, 2016.

The CBI has two cases against him -- one related to the IDBI Bank case and the other related to a loan default of over Rs 6,000 crore filed on the basis of a complaint from a State Bank of India-led consortium. He is facing extradition to India.

First Published: Sun, August 13 2017. 13:37 IST