DRT restricts Diageo from disbursing Rs 515 cr settlement money to Vijay Mallya

By: | Updated: March 7, 2016 5:03 PM

The Debt Recovery Tribunal (DRT) on Monday restricted Diageo from disbursing Rs 510 crore to Vijay Mallya, which was part of the settlement when he resigned as chairman of United Spirits Ltd.

vijay mallya - DRTLoan default case: The Tribunal passed the order on state-owned SBI’s application seeking the lenders’ first right on the -million payout from Diageo to UB Group promoter Vijay Mallya under a recent sweetheart deal.

In a fresh setback, the Debt Recovery Tribunal (DRT) on Monday restricted Diageo from disbursing Rs 510 crore to Vijay Mallya, which was part of the settlement when he resigned as chairman of United Spirits Ltd.

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The Tribunal passed the order on state-owned SBI’s application seeking the lenders’ first right on the $75-million payout from Diageo to UB Group promoter Vijay Mallya under a recent sweetheart deal. The next hearing in the case will be on March 28.

SBI had filed three other applications, including one seeking Mallya’s arrest and impounding of his passport, as the bank approached DRT seeking action against him for defaulting on loans.

In another development, the Enforcement Directorate on Monday registered a money laundering case against Vijay Mallya and others in connection with the alleged default of over Rs 900 crore loan from IDBI bank. They said while the ED’s zonal office in Mumbai has registered the case, sleuths are also looking at the overall financial structure of the now defunct Kingfisher airlines and a separate probe under foreign exchange violation charges could also be initiated.

“Mallya and others will soon be questioned. The agency has collected relevant documents from concerned authorities and the bank in question,” they said.

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