BENGALURU (TIP): 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.
The maker of McDowell and Black Label whiskey said these funds, transferred between 2010 and 2013 to certain UB Group companies, were used to enhance capacity, obtain exclusivity and lease deposits with regard to tie-up manufacturing units and agreement on specific projects among others.
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.”
During the previous fiscal, USL explained it reached a settlement with four such companies for about Rs 55 crore to whom funds were transferred. It is yet to reach an agreement with other parties, the company said in its quarterly report on Thursday.