IN A fresh blow to beleaguered Vijay Mallya, the Debt Recovery Tribunal on Monday (March 7) barred him from withdrawing $75m 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 $75m 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 in Bengaluru against the airline’s chairman Mallya in its bid to recover over Rs 7,000 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 Friday (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.