Vijay Mallya Barred From accessing Diageo Deal Money by Tribunal
- Gayathri Mathivanan
- March 7, 2016, 12:21 PM
The court - the Debt Recovery Tribunal (DRT) - ruled in favour of a group of creditor banks, barred Vijay Mallya from accessing Rs 515 crore exit payment from Diageo over a loan default case.
Kingfisher stopped flying more than three years ago, had Rs. 9,400 crore ($1.4 billion) in debts as of September 2013.
Debt Recovery Tribunal, allowing a plea by State Bank of India, restrained Diageo from disbursing the money for now and set March 28 as the next date of hearing. The public sector bank had sought DRT's intervention in seeking the lenders first right on the severance payout from Diageo.
The tribunal's decision is based on a petition by the State Bank of India, which is owed Rs. 1,600 crore by Kingfisher. SBI had filed three applications, including one in quest of Mallya's arrest and impounding of his passport.
Earlier, Enforcement Directorate registered a money laundering case against him and others in connection with the alleged default of over Rs 900 crore loans from IDBI bank.
Mr Mallya said in a statement on Sunday that he is in talks with a group of 17 banks for a one-time settlement of Kingfisher's debt, adding that he has no plans to run away from his creditors.
The banks attempting to recover bad loans granted to Kingfisher Airlines Limited include State Bank of India, IDBI, Axis Bank, Bank of India, Bank of Baroda, Central Bank of India, Corporation Bank, Federal Bank, Indian Overseas Bank, Punjab National Bank, Punjab and Sind Bank, Jammu and Kashmir Bank, UCO Bank, United Bank of India and the State Bank of Mysore.
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