In a double-whammy for flamboyant businessman Vijay Mallya, the government has annulled his re-appointment as Managing Director of Kingfisher Airlines while he also had to quit from board of another group company MCFL.
This comes close on the heels of minority shareholders of United Spirits, once a prized entity of Mallya-led UB group, rejecting proposals regarding proposed financial dealings of the company with entities connected to him.
Kingfisher, which had to be grounded in October 2012 due to severe financial crunch and mounting debt, had sought the Corporate Affairs Ministry's approval for Mallya's re-appointment for a period of five-year beginning October 16, 2013 "without remuneration".
The airline said in a regulatory filing today that its application has been rejected, but did not disclose any specific reason. Government sources, however, said that the decision was taken because Kingfisher failed to get necessary approvals from its lenders and shareholders for the re-appointment.
02/12/14 First Post
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This comes close on the heels of minority shareholders of United Spirits, once a prized entity of Mallya-led UB group, rejecting proposals regarding proposed financial dealings of the company with entities connected to him.
Kingfisher, which had to be grounded in October 2012 due to severe financial crunch and mounting debt, had sought the Corporate Affairs Ministry's approval for Mallya's re-appointment for a period of five-year beginning October 16, 2013 "without remuneration".
The airline said in a regulatory filing today that its application has been rejected, but did not disclose any specific reason. Government sources, however, said that the decision was taken because Kingfisher failed to get necessary approvals from its lenders and shareholders for the re-appointment.
02/12/14 First Post
