Sebi may grill USL officials over $75 mn compensation to Mallya

Market regulator Securities and Exchange Board of India (Sebi) is likely to interrogate United Spirits (USL) officials over Vijay Mallya's severance package of $75 million, said a source with direct knowledge of the matter.

On July 9, the USL had accused Mallya of fund diversion worth Rs 1,200 crore from the company to various Mallya-owned entities, including Force India, Watson Ltd and Kingfisher Airlines.

"Sebi investigations wing is to takeover the probe after a report from its surveillance department," said a person cited above.

Meanwhile, the market regulator is co-ordinating with Ministry of Corporate Affairs (MCA) for the probe in the alleged financial irregularities by Mallya.

Sebi to also look into the role of directors and independent members of the USL. Besides, the auditors who audited the company between year 2010 and 2013 are also under regulator's scanner, said a source

The Enforcement Directorate will also go through the Ernst & Young report and an earlier report prepared by PwC UK in April 2015 which led to the USL board seeking Mallya dismissal.

Securities and Exchange Board of India ( SEBI )