Indian liquor tycoon Vijay Mallya, also known as the King of Good Times, stepped down as chairman of the United Spirits Ltd (USL). The decision was made after spirits giant Diageo offered him £53 million ($75 million) to walk away from the business. 

Disputes have been going on between the USL that he led and Diageo, which also owns Guinness and Smirnoff. Ever since Diageo bought a controlling stake Mallya's family company, some allegations of irregularities on loans given to UB Group companies have triggered disagreements between the two party.

This is not the first time Diageo attempted to oust Mallya as the USL chairman. In April last year, the USL board had already begun a process to remove Mallya as the company's chairman due to financial allegations. Back then, Mallya denied the allegations and refused to leave his position.

However, on Thursday Mallya has reached an agreement with Diageo. "The time has now come for me to move on and end all the publicized allegations and uncertainties about my relationship with Diageo and United Spirits Ltd. Accordingly, I am resigning my position with the immediate effect. I am pleased to have been able to agree on terms with Diageo and USL," Mallya said in his resignation announcement.He further stated that the agreement he reached with Diageo has reached secures his family legacy.

According to The Huffington Post, Mallya has agreed to a global, excluding the United Kingdom, 5-year non-compete arrangement with Diageo. During the five-year period, Diageo will pay Mallya a total of about $75 million. The deal also means Diageo will take full management ownership of the USL. The chairman position will be taken by the company's independent director on the board, Mahendra Sharma.

Reuters reported that the USL has 39 percent of the Indian spirits market. As for Diageo, India is its second-largest market by sales. The overall spirits market in India was worth about $17 billion in 2014 as per capita consumption is expected to grow to 1.8 litres in 2019, compared to 1.4 litres in 2010.

Upon his resignation, Mallya has decided to move to England. "Having recently turned 60, I have decided to spend more time in England, closer to my children," Mallya said, as quoted by The Free Press Journal. He remains the chairman of his other business, United Breweries.

Vijay Mallya has agreed to resign as the United Spirits chairman and took Diageo's offer of £53 million to a 5-year non-compete agreement. The businessman decided to move to England while still running its other booze business, United Breweries.