Diageo sued Vijay Mallya $40 million repayment

Vijay Mallya has been sued by Diageo Plc. to recover a $40 million payment made when he was ousted from United Spirits Ltd, the UK spirits maker’s Indian unit, last year.

The amount was paid to him was part of a sweetheart deal under which Mallya agreed to leave United Spirits and not compete or interfere with it for five years. The total amount to be paid was $75 million over five years,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 to Mallya. His son, Sidhartha, is also named in the suit.

“Diageo is pursuing substantial repayment and compensation from Dr Vijay Mallya and certain of his affiliate companies,” Bloomberg quoted a spokeswoman for Diageo as saying in a statement. “They include seeking compensation from Dr. Mallya for breaches of the agreements announced in February 2016 that ended his association with United Spirits.”