The stock lost 2.44 percent to Rs 3,330 on the BSE, while at NSE, it went down by 2.52 percent to Rs 3,330.

Asked to quit United United Spirits' board, Mallya struck a defiant note saying he "intends" to continue as the Chairman and refuted the charges made by the company's board with regard to its prior-period accounts.

Mallya, who has sold controlling stake in United Spirits (USL) to world's largest spirits maker Diageo, also said that only "shareholders can oust a Director" and he would continue to function as USL Chairman "in the normal manner".

Alleging fund diversion to Kingfisher and other UB Group entities, United Spirits' board had on Saturday asked Mallya to quit the board. The company said it has "lost faith" in Mallya and would go to shareholders if he refuses to resign.

Reacting to the charges, Mallya said in a statement, "All I wish to say is that I intend to continue as Chairman of USL in the normal manner. This includes chairing monthly operating review meetings and board meetings."

Diageo now holds a controlling stake of around 55 percent stake in USL, which it had acquired for about USD 3 billion, while Mallya continues to own a small stake of 0.01 per cent in his personal capacity.

Some of his UB Group firms also continue to hold stakes totalling to about 3 percent.

The USL board asked Mallya to step down after "various improprieties and legal violations" were found in a probe into loans worth Rs 1,337 crore given by USL to UB Group firms.

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