Vijay Mallya has denied he has lost control of his share in the Force India Formula 1 team following a deal which will see him stand down as chairman of his spirits company, United Spirits Limited (USL).
London-based Diageo, which owns a controlling stake in USL, requested Mallya step down from his family business following an investigation into alledged financial misdealings, but Mallya originally refused.
However the two parties have now struck a deal which will see Mallya step-down in exchange for a $75 million (£54m) payment.
That sparked rumours the 60-year-old would also relinquish control of his 42.5 per cent stake in his F1 team, as that shareholding is held as collateral against a $135m (£97m) loan lent by Diageo and Standard Charetered to Force India parent company Watson Ltd.
"There is no change to VJM's ownership of the team. Vijay Mallya is team principal and managing director," a Force India spokesperson confirmed to Grand Prix Times.
Mallya himself has also moved to deny the rumours, telling the Press Trust of India that the deal to step down at USL has no bearing on his position at Force India.
"Nothing has changed at Force India," he said. "If you take a 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 everybody is making a deal about it.
"Formula One has nothing to do with my stepping down from United Spirits. They are not connected at all."
Meanwhile co-owner Subrata Roy, who is accused of fraudulent dealings and currently resides in an Indian prison, is looking to sell his 42.5 per cent stake in order to release much needed funds to pay off debts and secure his release.
