USL: Written off Rs 566 crore related to dues from UB Group firms

Business
May 27 2016 11:45 AM
Preksha

USL: Written off Rs 566 crore related to dues from UB Group firms

United Spirits (USL), India's largest spirits maker, said it wrote off Rs 566 crore in connection with the recovery of funds that were diverted from the company to "alleged UB Group entities" including now-defunct Kingfisher Airlines.

These funds were used to enhance capacity, obtain exclusivity and lease deposits with regard to tie-up manufacturing units and agreement on specific projects among others and were transferred between 2010 and 2013 to certain UB Group companies, the maker of McDowell and Black Label whiskey said.

The company, controlled by Britain's Diageo, added its internal probe related to these transactions indicated "various improprieties ad potential violation of provisions , inter alia, of the Companies Act 1956 and the then listing agreements signed by the company with various stock exchanges in India on which its securities are listed."

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