Sebi closes proceedings against 3 Mallya firms

NEW DELHI: Regulator Sebi has closed its adjudication proceedings against three group firms of defaulter businessman Vijay Mallya for alleged disclosure lapses in a 17-year-old case citing liquidation of a holding company, but did not rule out any penal action at a later date.

Sebi said it had observed certain non-compliances by three UB group companies while examining the letter of offer made by Zuari Fertilizers and Chemicals Ltd, along with other entities including United Breweries, Kingfisher Finvest India Ltd and McDowell Holdings Ltd to acquire shares of Mangalore Chemicals and Fertilizers Ltd.

MCFL had seen a fierce takeover battle in 2015 between Pune-based Deepak Fertilisers and Kolkata-based Zuari group which had support of Mallya-led promoters.


However, the present case relates to a transaction in January 2001 when promoter - United Breweries (Holding) Ltd -- had acquired 2 crore shares representing 16.88 per cent of MCFL pursuant to the allotment made under the Board of Industrial and Financial Reconstruction Rehabilitation Scheme.