Diageo Sues Indian Tycoon Vijay Mallya Over $40 Million Payout
- Diageo seeks to reclaim money paid over United Spirits deal
- Mallya charged with fraud in India and facing U.K. extradition
This article is for subscribers only.
Weeks before a London extradition hearing, Indian tycoon Vijay Mallya faces a second legal battle after Diageo Plc sued to recover a $40 million payment made when he was ousted from United Spirits Ltd. last year.
Diageo filed the suit in London Tuesday after setting out the grievances in its annual report in August. The drinks giant claims Mallya breached a $75 million agreement, of which it had already paid out $40 million, made when he stepped down as chairman of United Spirits in February 2016. It’s also seeking about $141 million over questionable payments made by companies affiliated with Mallya. His son, Sidhartha, is also named in the suit.