Vijay Mallya cannot withdraw $75-million payout from Diageo Says DRT

M_Id_481076_Vijay_MallyaNEW DELHI: In a major setback for liquor baron Vijay Mallya, the Debt Recovery Tribunal today barred him from withdrawing 75 million US Dollar that is over 500 Crore rupees exit payment from British liquor giant Diageo till the disposal of Kingfisher Airlines’ loan default case filed by SBI.
DRT Judge Benakanahalli allowing SBI plea, also restrained Diageo from 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 seeking the lenders’ first right on the deal, the judge also directed disclosure of details of the agreement which they have arrived at.
Three other applications filed by SBI before the Tribunal will come up for hearing on 28th of this month. SBI, which leads the consortium of 17 banks that lent money to the grounded Kingfisher Airlines, had moved the Debt Recovery Tribunal against the airline’s chairman Mallya in its bid to recover over Rs 7,000 crore of dues from him.
In further trouble for the UB Group promoter, the Enforcement Directorate (ED) earlier today had registered a money laundering case against him based on a CBI complaint.

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