Beleaguered businessman Vijay Mallya remains in “full control” even after relocating to UK, his UB group’s holding firm United Breweries Holdings Ltd has said while disclosing remuneration totalling Rs 1.6 crore.
Group company United Breweries Ltd, in which co-promoter Heineken has been hiking stake, has also disclosed total remuneration of about Rs 2.86 crore to Mallya, who moved to the UK earlier this year amid a furore over various cases involving erstwhile Kingfisher Airlines including about huge loan defaults. However, this payment had to be withheld pursuant to the orders of the Income Tax Department.
In its latest annual report, released to shareholders ahead of their Annual General Meeting on September 29, the group holding firm UBHL said it has been without a Managing Director since April 17, 2014.
“In the interregnum, the Chairman of the Board, Vijay Mallya is acting as the Principal Officer of the company and reviewed the performance of the Company at the Board Meetings held during the year.
“Even after his relocating to London, he has full control over the affairs of the company through appropriate delegation of duties to various operating executives who report to him on a regular basis,” it said.
Giving details of the remuneration paid to the directors, UBHL has disclosed fees totalling Rs 3.2 lakh to Mallya for attending board or committee meetings. Out of this, payment of sitting fees totalling Rs 1.6 lakh has been restrained by Order of the Tax Recovery Officer dated November 24, 2015, UBHL said.
However, Mallya received remuneration totalling about Rs 1.6 crore from two overseas subsidiaries of UBHL.
“The Chairman of the company has received remuneration from two subsidiaries, amounting to USD 120,000 (previous year USD 120,000) and British Pound 89,600 (previous year GBP 89,600) during the year 2015-16,” it said.
UBHL also said Vijay Mallya’s son Sidhartha ceased to be a director of the company with effect from March 31, 2016.
The company’s operations comprise primarily of holding of strategic investments and other securities, international trade, development of real estate, sale and rental of constructed premises including residential property of Kingfisher Towers, licensing of trademarks, advancing of loans and provision of guarantees.
Interestingly, it also disclosed having been given “the Export Excellence award” by a Karnataka business chamber.’
UBHL said it “is constrained by various restraint orders of the High Court of Karnataka as a result of which revenue yielding business proposals like franchising out the Kingfisher brand owned by the Company and renting out vacant space at UB City, Bangalore could not be implemented.”