1. Diageo Holdings Netherlands files interlocutory application to bar Vijay Mallya from withdrawing $75 mn

Diageo Holdings Netherlands files interlocutory application to bar Vijay Mallya from withdrawing $75 mn

After British liquor giant Diageo Plc, Diageo Holdings Netherlands today filed an interlocutory application before the Debt Recovery Tribunal seeking vacating of DRT's order barring liquor baron Vijay Mallya...

By: | Bengaluru | Updated: June 3, 2016 9:32 PM
vijay mallya deportation from UK- loan default case All the parties, including Kingfisher, Diageo Plc and UBHL, pleaded today before the Tribunal to take up their applications on a priority basis. (Reuters)

After British liquor giant Diageo Plc, Diageo Holdings Netherlands today filed an interlocutory application before the Debt Recovery Tribunal seeking vacating of DRT’s order barring liquor baron Vijay Mallya from withdrawing USD 75 million exit buyout by it under a deal till disposal of SBI’s case against him over loan default.

All the parties, including Kingfisher, Diageo Plc and UBHL, pleaded today before the Tribunal to take up their applications on a priority basis.

“The Tribunal will decide which applications should be heard on priority basis and also set a timeline for disposing all the pending applications,” DRT Presiding Officer Benakanahalli said and then posted the matter for hearing on June 7.

Yesterday, Diageo Plc had filed the interlocutory application seeking vacating of DRT’s March 7 order.

DRT had barred Mallya from withdrawing USD 75 million  exit payment from Diageo till the disposal of the case over  the loan default by Kingfisher Airlines.

It had restrained Diageo and United Spirits Limited, owned by the UK-based firm, from temporarily disbursing the amount to Mallya who worked out the deal under a severance package.

However, USD 40 million of the USD 75 million severance package deal had already been disbursed, following which the bankers’ consortium had sought directions from the Tribunal to attach the amount before it.

Following a directive of the Tribunal, Diageo Plc and its two subsidiaries submitted the details of severance package deal, in which the bankers figured out that USD 40 million of the USD 75 million was parked in the account held by Vijay Mallya in New York-based J P Morgan Bank.

On May 17, DRT directed J P Morgan Bank not to disburse to Mallya USD 40 million and asked it to “attach” (submit) before it statements of accounts held by Mallya in the bank.

On the other hand, Vijay Mallya-controlled United  Breweries (Holdings) Limited (UBHL) sought time to submit evidence and substantiate their claim of Rs 594 crore from bankers for compensating the losses incurred by it due to the sale of USL equity shares by lenders at cheaper rate.

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