Millennium Post

Mallya fails to get Govt nod to be KFA MD again, ‘quits’ MCFL board

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”.

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.

Also, without giving any specific reason, MCFL said in a regulatory filing on Monday that “Vijay Mallya, a Director on the Board of Directors of the company, has resigned with immediate effect.”

58-year old and Kolkata-born Mallya’s resignation at MCFL followed an intense takeover battle between West Bengal-based Zuari group and Pune-based Deepak Fertilisers for wresting control of MCFL, which has a urea plant at Mangalore.

The plant has been shut since October this year due to expiry of permission given by the government for production of farm nutrient from high cost feedstock naptha.

MCFL scrip up 9%

Mumbai: Shares of Mangalore Chemicals and Fertilizers surged over 9 per cent on Monday after Vijay Mallya resigned as a director of the company. After surging 19.97 per cent to Rs 97.90 in intra-day session, shares of MCFL finally ended at Rs 89.25, up 9.38 per cent from previous close on the BSE.
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