MCA and I-T would probe United Spirits

Ministry of Corporate Affairs and the Income Tax Department has issued notices to United Spirits after the company’s current administration ordered an enquiry over loans given away by Vijay Mallya’s United Breweries.

According to media reports the company has asked the present CEO Anand Kripalu to look into "possible existence of any other transaction of a similar nature". "The Board also believes that it is necessary to assess whether additional matters or the transactions with the additional parties were improper." USL asserted.

In September 2014, USL ordered an investigation into the “role of individuals involved and potential non-compliance” of the Companies Act, 1956. This happened after Diageo bought a whopping 55% stake in the company for around $3 billion.

Come April this year, the Diageo led new management asked Vijay Mallya to give up chairmanship of USL. It alleged that several legal violations were found in an enquiry into loans worth Rs. 1,337 crore given by USL to United Breweries.

Mallya however refused to quit saying that Diageo has ‘contractual obligation’ to support him as Chairman and Director.

(Image credit: icarus)