United Spirits Pursues ₹13.37 Billion Claim with 9.5% Interest, Files Appeal in Karnataka High Court

United Spirits Ltd (USL), India’s leading beverage alcohol company, has intensified its legal efforts to recover a significant sum of ₹13.37 billion, along with 9.5% annual interest, from United Breweries Holdings. The claim pertains to unsecured loans extended by USL to its erstwhile subsidiary, which have remained unpaid for an extended period.

 

Following protracted recovery attempts, USL has now filed an appeal in the Karnataka High Court, seeking judicial intervention to enforce its claim. The company’s move comes after previous legal and regulatory scrutiny surrounding the complex financial transactions between USL, United Breweries Holdings, and the UB Group, especially in the wake of Diageo’s acquisition of a controlling stake in United Spirits.

 

The outstanding dues, aggregating to ₹1,337 crore plus interest, have been a longstanding point of contention, with USL reiterating its commitment to pursue all available legal remedies to safeguard shareholder interests. The appeal in the Karnataka High Court marks a critical step in the ongoing litigation, as USL seeks to expedite the recovery process and resolve legacy financial issues that have persisted since the transition in ownership.

 

Industry observers note that the outcome of this high-profile case could have significant implications for corporate governance and recovery proceedings in India’s financial sector.

 

Sources: Economic Times, Deccan Chronicle, Outlook Business