Vijay Mallya under stress: United Spirits shares fall, company gets IT/ MCA notices Â
United Spirits shares tumbled as the markets opened today. The company got notices from tax officials and this seems to be the main cause of the fall in companyâ€™s share prices.
Latest updates suggest that the companyâ€™s shares tumbled by around two percent and were down to Rs 3,440 at the time of filing this report. Late last evening, the company had got notices from income tax department and Ministry of Corporate Affairs.
Sources claim that the latest notices received by United Spirits are with regarding inspection of its account books following an earlier probe ordered by its new management over alleged irregularities in loans given by United Spirits to various companies of Vijay Mallya-led UB Group.
Some seven months ago, in September 2015, the board of United Spirits, in which Diageo had bought a controlling 55 per cent stake for about $3 billion, had ordered a “detailed and expeditious inquiry” into “role of individuals involved and potential non-compliance” of the Companies Act.
The new management has reportedly that “various improprieties and legal violations” were found in a probe into loans worth Rs 1,337 crore given by United Spirits to United Breweries (Holdings) (UBHL).