[Bengaluru] King Fisher Mallya Fished In Diageo Deal By DRT
DRT barred Mallya from withdrawing $75mn till disposal of SBI plea
In a fresh blow to beleaguered Vijay Mallya, the Debt Recovery Tribunal today barred him from withdrawing USD 75 million exit payment from British liquor giant Diageo till the disposal of Kingfisher Airlines’ loan default case filed by SBI.
Diageo and United Spirits Ltd, owned by the UK-based firm, have also been restrained by DRT Judge Benakanahalli from temporarily disbursing the amount to Mallya, who worked out the deal under a severance package.
The tribunal ordered that the amount be attached till the disposal of the original application filed by State Bank of India in 2013.
In his order on the plea by the SBI application seeking the lenders’ first right on the USD 75-million sweetheart deal, the judge also directed disclosure of details of the agreement which they have arrived at.
Three other applications filed by SBI before the DRT will come up for hearing on March 28.
SBI, which leads the consortium of 17 banks that lent money to the grounded Kingfisher Airlines, had moved DRT here against the airline’s chairman Mallya in its bid to recover over Rs 7,800 crore of dues from him.
The state-owned top lender had filed three other applications, including one seeking Mallya’s arrest and impounding of his passport, which the judge had said on March 4 would be heard later.
Mallya had to quit recently as chairman of United Spirits a company founded by his family in which he sold majority stake to Diageo.
Under the deal, that also ended a year-long boardroom battle at United Spirits, Diageo has agreed to pay Mallya USD 75 million (Rs 515 crore).
The settlement was sealed even as at least three banks including SBI declared the defunct Kingfisher Airlines, Mallya and his group holding firm UBHL (United Breweries Holding Ltd) as ‘wilful defaulters’ to recover unpaid loans.