Mallya will ‘remain’ team principal

Date published: February 29 2016

Vijay Mallya has denied speculation that he is set to lose control of Force India after agreeing a golden handshake with United Spirits.

Last week the Indian businessman agreed to a $75 million pay-out in exchange for him stepping down as as chairman of the United Spirits Ltd, in which Diageo holds a controlling interest.

This had led to some speculation that he would not only lose his IPL cricket team, Royal Challengers Bangalore, but also Force India.

Mallya, however, insists he remains in control of the Formula 1 team despite Diageo now holding his shares.

“Nothing has changed at Force India. I remain team principal and managing director,” he told PTI.

“If you take loan, you give some shares as security. That does not mean security has changed. Diageo may have security over my shares but ownership has not changed. I don’t know why is everybody making a deal about it?

“Formula One has nothing to do with my stepping down from United Spirits. They are not connected at all. In F1, nothing has changed. The ownership pattern remains exactly the same.”