Heineken, Diageo to take call on board position post wilful defaulter tag: Vijay Mallya

Vijay Mallya, United Breweries group Chairman and debt-ridden Kingfisher Airlines promoter who was declared a wilful defaulter by the United Bank of India, on Thursday said Heineken and Diageo should be asked directly about their stance on his board position.

The question was raised as being declared a wilful defaulter means board position becomes untenable, to which Mallya replied, "The issues have not been raised with me... It is premature to speculate."

On Monday United Bank of India declared Mallya and three directors of debt-ridden Kingfisher Airlines, wilful defaulters due to the company allegedly indulging in diversion of funds by opening multiple accounts.

Speaking to reporters on the sidelines of 15th Annual General Meeting of Members of United Breweries Limited in Bangalore, he denied the allegations made by the state-run bank and said, "we shall pursue all available legal remedies."

"In response to the United Bank of India action, I have already issued a media statement which basically says that we strongly deny the allegations made, that we disagree with the findings of their Grievance Redressal Committee before which we have had no opportunity to appear," Mallya said.

To a question on United Spirits' (USL) plans to institute an inquiry into loans advanced by the company to different entities of the UB group, Mallya said, "I was part of the United Spirits Limited board meeting yesterday. I know exactly what comments were made. Once again there has been a proper inquiry instituted under the charge of the Managing Director and the CEO, and let the inquiry be conducted and the results will obviously be known."

Giving details about the AGM, he said the shareholders did not raise any questions and concerns at all. They were highly complimentary about the company's results. I explained the environment and trading conditions for the year under review despite which United Breweries increased its market share.

To another question, he said, "Beverage alcohol must definitely be included in the GST scheme. We are a very large industry, very large employers, but more significantly one of the most significant and highest contributors to state revenue. There is no reason to exclude beverage alcohol industry from GST."

In fact, he added, it would be highly prejudicial to the beverage alcohol industry if they were to be excluded from GST.

On Kerala's new liquor policy and levy of a five per cent cess on liquor, he said Kerala was a large consuming state. However, each state has a right to whatever policy it chooses particularly on the alcoholic beverage industry.

He said, "We have seen other states in India before impose total prohibition. In Kerala it is only a road map over ten years. I do not believe in prohibition and I think there is sufficient evidence to prove that prohibition has not succeeded anywhere, not even in countries like United States... I think all this needs to be considered."

Stating how the beverage alcohol industry was a very significant contributor to the revenues of the Kerala government, Mallya said he hoped they had considered all factors before announcing road map.