Vijay Mallya default case: Debt Recovery Tribunal to pass its orders on Monday

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Bengalore | Updated: March 7, 2016 10:05:23 AM

The Debt Recovery Tribunal (DRT) will pass orders on the 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.

DRT had reserved its order after hearing the submissions made by both parties - bankers and Mallya - on March 4. (Reuters)DRT had reserved its order after hearing the submissions made by both parties – bankers and Mallya – on March 4. (Reuters)

The Debt Recovery Tribunal (DRT) will on Monday pass orders on the 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.

DRT had reserved its order after hearing the submissions made by both parties – bankers and Mallya – on March 4.

George Joseph, a counsel for bankers, said orders will be passed tomorrow.

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.

DRT had taken up, on a priority basis, the application for securing the first right on the $ 75 million severance package.

The tribunal had said it would hear the other three applications at a later date.

SBI, which leads the consortium of 17 banks that lent money to the grounded Kingfisher Airlines, had moved DRT against the airline’s chairman Mallya in its bid to recover over Rs 7,000 crore of dues from him.

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