Pursuits

Diageo Drops Mallya as India Unit Chairman, Pays Him $75 Million

  • Debt-laden Vijay Mallya signs 5-year non-compete agreement
  • ICICI Bank's Sharma appointed as chairman of United Spirits
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Diageo Plc.’s India unit has made a deal for Vijay Mallya to resign as chairman, and will pay the embattled liquor baron $75 million not to compete or interfere with the company for five years, ending a 10-month boardroom battle to oust him.

Mallya resigned with immediate effect as chairman of United Spirits Ltd., which Diageo bought in April 2014, the Indian company said Thursday. The Bengaluru-based distiller sought his resignation after an internal inquiry found he diverted funds to other companies under his control. Mallya has denied any wrongdoing.