Debt recovery tribunal says payment to Vijay Mallya can’t be made until case filed by SBI, other lenders is disposed of
The tribunal said Mallya cannot access the money until a case filed against him by SBI is settled. The order came in response to one of the four so-called interlocutory applications filed last week by SBI, which also demanded the arrest of Mallya, the impounding of his passport and a full disclosure of his assets and liabilities.
Bengaluru: UB Group chairman Vijay Mallya received a setback on Monday when the debt recovery tribunal (DRT) in Bengaluru blocked him from getting his hands on a $75 million payout by Diageo Plc., responding to an application by creditors led by State Bank of India (SBI).
The tribunal said Mallya cannot access the money until a case filed against him by SBI is settled. The order came in response to one of the four so-called interlocutory applications filed last week by SBI, which also demanded the arrest of Mallya, the impounding of his passport and a full disclosure of his assets and liabilities.
SBI has also moved the Karnakata high court for similar directives.
Banks owed money by Mallya’s grounded Kingfisher Airlines have the “first right” to the Diageo money, according to SBI.
The tribunal on Monday also directed London-based Diageo and its Indian unit United Spirits Ltd (USL) not to disburse any money to Mallya before the case is disposed of. It set the next hearing for 28 March.
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