Vijay Mallya may sue former ally
UB Group is likely to initiate legal action against one-time ally and former Diageo head Deepak Roy.
By Boby Kurian, TNN |
BANGALORE: UB Group is likely to initiate legal action against one-time ally and former Diageo head Deepak Roy. The BDA board is expected to meet on Thursday to consider giving Mr Roy, arguably one of the best known alcobev industry veterans, a small stake.
“Deepak Roy has a no-compete clause with UB Group. He should know the agreement with UB Group when he left with a package,” UB Group chairman Vijay Mallya told ET. After leaving Diageo fold, Mr Roy was part of the Mallya camp before quitting 2005. Mr Roy said he was not aware of any no-compete with UB.
Mr Mallya said he will not drop a case instituted by one of his group companies, Shaw Wallace & Co (SWC), against BDA over the ownership of Officers’ Choice brand. “SWC will pursue this case in a bid to get the brand back to itself,” Mr Mallya said. SWC, formerly controlled by the late Manu Chhabria, had initiated the case when Kishore Chhabria walked out of the company following a split with his elder brother in the early 90s.
Mr Roy and BDA have been in discussions regarding a partnership for well over a year. It is believed that the Chhabria company is offering stake to Mr Roy with an understanding that the latter would steer BDA to an IPO in the near future.
“Deepak Roy has a no-compete clause with UB Group. He should know the agreement with UB Group when he left with a package,” UB Group chairman Vijay Mallya told ET. After leaving Diageo fold, Mr Roy was part of the Mallya camp before quitting 2005. Mr Roy said he was not aware of any no-compete with UB.
Mr Mallya said he will not drop a case instituted by one of his group companies, Shaw Wallace & Co (SWC), against BDA over the ownership of Officers’ Choice brand. “SWC will pursue this case in a bid to get the brand back to itself,” Mr Mallya said. SWC, formerly controlled by the late Manu Chhabria, had initiated the case when Kishore Chhabria walked out of the company following a split with his elder brother in the early 90s.
Mr Roy and BDA have been in discussions regarding a partnership for well over a year. It is believed that the Chhabria company is offering stake to Mr Roy with an understanding that the latter would steer BDA to an IPO in the near future.
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