More trouble for Vijay Mallya: DRT directs Diageo not to disburse $40 million to him

The Debt Recovery Tribunal (DRT) on Tuesday directed Diageo Plc not to disburse USD 40 million of the USD 75 million deal to Vijay Mallya.

Last Updated: May 17, 2016, 20:45 PM IST
More trouble for Vijay Mallya: DRT directs Diageo not to disburse $40 million to him

Zee Media Bureau

New Delhi: The Debt Recovery Tribunal (DRT) on Tuesday directed Diageo Plc not to disburse USD 40 million of the USD 75 million deal to Vijay Mallya, as per PTI report.

DRT also asked JP Morgan Bank to submit before it the statements of account held by Mallya. 

The directions until further orders came during the hearing on two applications filed by the consortium of banks led by SBI.

 

The consortium had prayed for directions from the Tribunal not to disburse USD 40 million of the USD 75 million severance package deal arrived at between Diageo and Mallya and to ask JP Morgan Bank to attach before DRT statements of the account held by Mallya in their bank.

Diageo had on May 12 submitted the settlement agreement to the DRT.

 

The DRT in early March barred Mallya from accessing the 75 million USD (Rs 515 crore) exit payment from Diageo till the loan default case with the SBI is settled.

The DRT, allowing an SBI plea, restrained Diageo from disbursing the money.The SBI had sought the DRT`s intervention in seeking the lenders` first right on the USD 75-million payout from Diageo to Mallya as part of the deal earlier in February.