The Securities Exchange Board of India (SEBI), will soon pass a final order regarding Vijay Mallya on if he can hold the board position in the listed companies. With this the long wait for the full-time Chairman for United Breweries Limited (UBL) will end soon.
Currently, Vijay Mallya has left the country and is believed to be hiding overseas in Britain, facing charges of financial fraud for the past few years - after he defaulted to repay the borrowed loans from Indian Banks. The Indian government is trying all the possible ways to extradite him. He has been reluctant to nominate a successor or even consider stepping down from the Board of United Breweries which is a joint venture between Vijay Mallya and Heineken International.
"The hearing has been concluded," a person familiar with the development said. "SEBI is trying to come out with an order before the May deadline." A lawyer familiar with the case said it's highly unlikely SEBI would change its earlier stance of barring Mallya from staying on the Board.
If SEBI does not change their stand then Mallya will be forced to quit United Breweries Board and allow the company to choose a full-time Chairman.
As of now, UBL is rotating its Board members as acting Chairman, regularly.
"The company is functioning well and operations are in good shape, but it is not good corporate governance to have an acting chairman for so long," a company Board member said seeking anonymity.
A Heineken spokesperson said, "Vijay Mallya is not a member of UBL's Board of directors, in compliance with the SEBI order dated 25 January 2017."