Flamboyant ((of a person or their behaviour) tending to attract attention because of their exuberance, confidence, and stylishness.) businessman Vijay Mallya has quit as Chairman of United Spirits after its new majority owner Diageo agreed to pay Rs 515 crore and absolve him of all liabilities over alleged financial lapses at the company founded by his family. Mallya, who along with his group firms is fighting ‘wilful defaulter’ tags given by various lenders in relation to loans taken by long-defunct Kingfisher Airlines. Diageo has agreed to retain Sidhharth Mallaya as Director of the USL Group firm that runs the RCB cricket team of IPL cricket tournament for at least two years.

Mallya himself has agreed to resign from boards of all USL group firms, including as Chairman and non-executive director of United Spirits Ltd (USL). He would become ‘founder emeritus’ of USL and Chief Mentor of RCB. Diageo said it will pay USD 40 million of this amount immediately with the balance being payable in equal instalments over five years.

The tussle (a vigorous struggle or scuffle, typically in order to obtain or achieve something) over Mallya’s chairmanship in United Spirits has been brewing for some time. Diageo completed the purchase of a majority stake (54.7%) in United Spirits in July 2014 and has been pushing for Mallya’s removal from chairmanship since then. Mallya refused to step down.

In April, the board of directors at United Spirits asked Mallya, who holds a 4% stake in United Spirits, to resign from the board after an internal probe allegedly found financial irregularities at India’s largest liquor company.