IPL 2018: ₹1 Billion Diverted From Royal Challengers Bangalore’s Holding Company - Report
Published - 06 May 2018, 10:36 PM | Updated - 22 Aug 2024, 11:51 PM
Royal Challengers Bangalore (RCB) is going through a time both on and off the field in the ongoing Indian Premier League (IPL).
While they languish at the wrong half of the points table, a news revealed by Business Standard shattered them off the field. Virat Kohli and his men need to start winning to stay in contention for the playoffs.
According to the report, INR one billion moved from the account of the RCB franchisee’s holding company – Royal Challengers Sports Pvt Ltd. (RCSPL).
Moreover, they revealed the transaction during an internal probe by the United Spirits Limited (USL).
United Spirits is the parent company of the Royal Challengers Sports Pvt Ltd.
RCSPL, in its 2016-17 financial statement filed before the financial regulators, has alleged that a whopping ₹115 crores ($1.15 billion) had been “potentially diverted from Royal Challengers Sports Private Limited”.
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Vijay Mallya was the owner of the company until the British beverage company Diageo acquired it in 2014.
The new owner has been conducting investigations into financial irregularities at USL before its acquisition.
The alleged financial irregularities at the Royal Challengers Bangalore holding company pertain to transactions. It was conducted between October 2010 and July 2014, according to a report.
Moreover, during this period Mallya’s companies had the ownership of RCSPL. Mallya now has fleed from the country as is leaving in foreign countries.
The initial inquiry, launched by the British owners in September 2014, looked into transactions conducted between 2010 and 2013. They found that USL funds went to Kingfisher Airlines and some other companies related to Mallya’s United Breweries Group.
An additional inquiry concluded in July 2016, found that almost ₹1,200 crore moved from USL to overseas and Indian entities associated with USL’s former non-executive chairman, Vijay Mallya.
The same additional inquiry also found improper balance in the accounts of RCSPL.
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