Mallya steps down from United Breweries board

The embattled Vijay Mallya has reportedly stepped down from the board of United Breweries and is to name a successor.

Mallya has been clinging on as a member of the board despite the Securities and Exchange Board of India (SEBI) barring him from holding any such positions due to his huge outstanding debts and accusations of money laundering.

It is thought United Breweries (UB), which is part-owned by Heineken now, has persuaded Mallya to step down, especially as the chance of him returning to India voluntarily is now so remote.

Mallya must now choose a successor, something which is likely to happen before the end of the year, while UB has nominated CY Paul, one of its directors, as acting chairman in the interim.

Mallya may also be hoping that by stepping down voluntarily he will receive a compensation package but Heineken will no doubt be extremely wary of such a move as it will potentially expose the brewer to regulatory scrutiny as happened with Diageo when it took over United Spirits before the full extent of Mallya’s fiscal problems became clear.

Mallya was recently rearrested in London on money laundering charges.