Is Viikings trying to take over Monte Cruz’s beer factory?

The internal dispute between Viiking Beverage Pvt Limited and Impala Distillery and Brewery Ltd is making news recently with court battles, public allegations, and counter allegations. Herald investigated the matter by interviewing both sides and inspecting their documents and found that this is a classic case of a mega-corporation trying to take over a small family business.

VBPL is a company owned by Sachiin Joshi, who recently purchased the Kingfisher Villa in Candolim and is also the owner of Planet Hollywood in Utorda. Imapa Distillery is owned by former Minister Francisco Monte Cruz and his family. His son, Vijay Monte Cruz is currently running the company. In 2014, VBPL signed an agreement with IDBL wherein IDBL will bottle the “Kings Beer”, the trademark of which is owned by VBPL. As part of the agreement, VBPL would have to pay the salaries and suppliers along with clearing a previous debt of IDBL. The agreement was for a duration of two and a half years.

When the agreement expired in mid 2018, VBPL asked IDBL to sign another lease agreement, this time for 25 years. “My family refused the offer since that would mean virtually handing over the factory to them”, said Vijay Monte Cruz. On the other hand, representatives of VBPL said that they have invested crores in upgrading the factory. While Vijay claims that VBPL has yet to honor its previous agreement, VBPL officials said that without singing the lease agreement, they will not spend any more money.

Since August 2018, VBLP claim that they had been trying to resolve the issue with Vijay Monte Cruz. In October 2018, VBPL approached the District Court and filed an arbitration application where they prayed and were granted an order retraining IDBL from interfering with the existing stock, raw material and machinery and/or to be restrained IBPL from interfering with the possession of the factory by VPBL. Since then the production of beer in the factory has been suspended.

Interestingly, VBPL also filed a police complaint against Vijay Monte Cruz and his father Fancisco Monte Cruz in Mumbai for cheating and fraud. According to the Director of VBPL Nikash Aujha since the agreement was signed in Mumbai in 2014, the complaint had to be filed in Mumbai. But Vijay Monte Cruz said that a complaint is a form of harassment. “Just a few days before Sachiin Joshi had called hinted by saying if I want to I can pick up your father in two days. My father has limited movement since he suffered a stroke and he cant speak. Why is my father dragged in the complaint?”, he questioned. VBPL clarified that since Francisco Monte Cruz is a director of IDBL and was actively involved in decision making, his name has been added to the complaint. However, this does not explain why the remaining directors have been left out.  

While VBPL claims that they are the victims of fraud by Vijay Monte Cruz, there is a fundamental flaw in their argument. In a press note released by the company on 29 December, the company claimed that they had signed the agreement in 2012. However, when Herald asked to inspect the lease copy, VBPL claimed that they had given it to the court.  Herald pointed out that they should have been having a copy of the agreement. In response, they gave a statement saying  “we have validated documents and receipt that have been accepted by the court and even the court’s verdict which states our right towards tenancy of the premises”.  

However, the lease agreement was not enclosed in the petition. VBPL had only enclosed a receipt of a handover of the factory which Vijay Monte Cruz says in forged. When Herald asked VBPL to share the name and contact number of the person who signed the lease agreement and the receipt, VBPL refused stating that the agreement has been signed by IDBL’s authorized signature and that “we believe Impala / Mr. Vijay Monte Cruz is the correct person to share the information on this”. Vijay Montecruz claims that the lease agreement doesn’t exist since both parties met the first time in 2014. He further claims that his lawyers did not challenge the lease and tenancy rights since the arbitration court was not a forum for that as stated by the judge in his order.

During the course of the investigating, a press conference was taken on 5th January by three individuals claiming that Vijay Monte Cruz had cheated them. Vijay Monte Cruz claims that VBPL organised the press to defame him. Interestingly, Herald received an invitation for the press conference from the PR representative of VBPL  Monte Cruz’s factory at Assolda is valuable since its only one of two brewing factories in Goa and in the Konkan region.  It will be a huge loss to VBPL if they are forced to give up on the factory. On the other hand, Vijay Monte Cruz remain firm on his demand that VBPL must honor the commitments made in the previous agreement. The deadlock is not likely to be resolved anytime soon and with the factory remains closed, more than 100 workers, suppliers and distributors remain without work.