The 61st annual general meeting of shareholders - which was banned for media representatives by Mallya - witnessed hurling of accusations by employee-shareholders and other small shareholders for siphoning off funds by Chhabria from Herbertsons' subsidiary, BDA Ltd and expression of concern at the fate of the company under Chhabria. "The background of Chhabria brothers is scary enough to make shareholders of any company to look for alternate promoters," said a shareholder.

Later, speaking to newspersons, Chhabria said that the entire AGM drama was "played from the galary by Mallya and the UB team while his own team behaved in a dignified manner." Chhabria sat all through the entire AGM on the dais while his representativesfought the takeover battle from the floor.

The Mallya directors sought to be removed are: former managing director, S D Lalla, S S Gandhi, S R Gupte, R M Parekh, V K Rekhi and S K Bishwal. Reading a prepared statement, Mallya nominated directors dubbed the resolutions by Chhabria to remove them as "invalid and illegal" as Chhabria did not cite any reasons for "losing confidence" in them.

On alleged siphoning of funds by Chhabria from BDA Ltd, Mallya informed the shareholders that the matter has been referred to the Company Law Board for appropriate action. Chhabria, however, claimed that he has served a legal notice to Mallya for making wild allegations of siphoning of funds in a letter written to Sebi.

Chhabria told reporters that his group companies now own over 50 per cent shareholding in Hebertsons "which would be reflected in today's voting." ``We own over 50 per cent of shares in Herbertsons. Most of the stake is held by my uncle Madan Chabbria,'' Chabbria clarified. Mallya, however, disputedChhabria's claims saying that he had made "various claims in various forums." When asked, Mallya refused to give his shareholding in the company.

Admitting the mistake of inviting Chhabria into Herbertsons, Mallya offered to buy Chhabria out. "I would like to buy his stake instead of selling my stake to him," Mallya said. Incidentally, it was Mallya's father Vittal Mallya who gained control of Herbertsons in late 50s. Chhabria said he is willing to launch an open offer to the shareholders of the company as per Sebi's takeover guidelines but as the regulator has launch an enquiry against his acquisition of shares, they were unable to take a decision on the offer.

Mallya had accommodated Chhabria into Herbertsons by giving him a 26 per cent shareholding and in return brought into the UB fold BDA Ltd, which accrued to Kishore Chhabria when he broke off from his brother Manu Chhabria of Shaw Wallace.