MUMBAI: Diageo Plc, the world’s largest liquor company, will hold back the remaining $35 million of the $75 million it had agreed to pay Vijay Mallya as part of a settlement, said two executives aware of the development. It will instead seek to recover dues from the absconding businessman, they added.These dues include $135 million that Diageo had given to Standard Chartered Bank as a conditional guarantee for the liabilities of Watson Ltd, a company affiliated with Mallya. Diageo has the benefit of counter-indemnities from Watson and Mallya in respect of its liabilities under the guarantee. The funds were shown on USL’s books already so there won’t be any financial implications in terms of recovery, he said.For Diageo, India now accounts for almost 40% of sales volume and 9% of net sales. India is the largest whisky market in the world, selling almost 200 million cases.

Source: Economic Times July 16, 2017 18:27 UTC