UTI-IAS acquires Mallya's 3.97 per cent voting rights in UBL

Unit Trust of India Investment Advisory Services (UTI-IAS) has acquired Vijay Mallya's 3.97-per cent voting rights on pledged shares in United Breweries (UBL) due to a default in the payment of a loan.

Mallya will now see his voting rights in the company reduced to a mere 0.06 per cent.

UBL informed the Bombay Stock Exchange (BSE) on Wednesday, "Unit Trust of India Investment Advisory Services in their capacity as the security trustee in relation to term loans secured by a pledge over 1.04 crore shares of the company have acquired voting rights in relation to the pledged shares upon notification of occurrence of an event of default."

Voting rights in relation to 1.04 crore shares amount to 3.97 per cent were acquired by UTI-IAS on May 11.

This was intimated to the company on June 5, as per the filing.

However, UBL added that while voting rights have been acquired, equity shares have not yet been acquired.

"The equity shares themselves have not yet been acquired as the pledge has not yet been invoked and these shares remain pledged to the acquirer", the company said.

Mallya has been embroiled in a number of cases, including against banks over the 'willful defaulter' tag related to loan defaults by grounded Kingfisher Airlines.

Earlier this year, a 17-bank consortium led by State Bank of India (SBI) initiated the process of taking over physical possession of the prized Kingfisher House, worth Rs 100 crore.

Mallya has also been facing trouble over issues at his various Group companies, including United Spirits (USL) , where he has sold the controlling stake to UK-based Diageo Plc.

USL has received notices from the ministry of corporate affairs and the I-T department for inspection of its books in the wake of the investigation carried out by the company's new management into alleged irregularities in loans provided to Mallya-led UB Group companies.