United Spirits refuses to share inquiry report on Vijay Mallya with BSE, NSE

United Spirits Limited (USL) has refused to share with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) its inquiry report on the alleged fund diversion to Vijay Mallya's UB Group on the grounds that public disclosure of the confidential report could hurt its business and potentially prejudice an investigation into the issue by legal authorities.

BSE and NSE had separately asked USL to provide its internal audit report so that investors could be informed about the details.

BSE had sought clarification from USL with respect to its disclosure dated April 25 about the company having lost confidence in Mallya and he being asked to quit as chairman and director. Mallya rejected the demand for his resignation from the USL Board and denied all the allegations.

The company was also asked to clarify on any submissions made by it to the government or other authorities in connection with this matter. USL said that the internal report contains sensitive commercial and operational information concerning the company and transactions and dealings involving various parties, and is confidential to the company.

A public disclosure of the internal report would provide the company's competitors and other third parties with vested interests an access to such sensitive commercial and operational information of the company, and thereby provide an opportunity for such parties to use such information in a manner that is prejudicial to the interests of the company and its shareholders, USL added.

USL further added that the inquiry suggested that the manner in which certain transactions were conducted prima facie indicated various improprieties and legal violations. While USL's Board was not in a position to determine the roles of any individuals involved, the company was asked to report such transactions to the relevant authorities.

A public disclosure of the internal report would potentially prejudice and interfere with the investigations by the relevant authorities and could also potentially lead to misuse of the evidence contained in the internal report, it said.