Liquor baron Vijay Mallya has resigned as a director of group entity Mangalore Chemicals and Fertilizers Ltd (MCFL) without citing any reasons.
In a filing with the stock exchanges, MCF said Mallya, a Director on the Board of Directors of the Company, has resigned with immediate effect. The resignation was followed by sharp 15 per cent spike in MCFL share price.
The company has been going through a tough period due to its inability to get natural gas to operate its urea plant. The plant has been shut for the last two months. Government has ended subsidies for urea producers using naphtha as feedstock.
Mallya has been under pressure from lenders led by the State Bank of India as well as the Department of Financial Services for his failure to repay Rs. 7,500 crore loans. Few banks have declared a wilful defaulter.