Diageo sues Vijay Mallya for $40 million payment

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Mallya allegedly breached a $75 million agreement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016

BUSINESS Updated: Nov 18, 2017 00:03 IST
Livemint, New Delhi
Diageo Plc. has sued businessman Vijay Mallya to recover a $40 million payment made when he was ousted from United Spirits Ltd, the UK spirits maker’s Indian unit, last year, Bloomberg reported on Friday.

Diageo filed the suit in London on Tuesday after setting out the grievances it has against Mallya in its annual report in August, the report said.

The spirits maker claims Mallya breached a $75 million agreement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016, Bloomberg said.

It’s also seeking about $141 million over questionable payments made by companies affiliated to Mallya. His son, Sidhartha, is also named in the suit, according to Bloomberg.