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Mallya Case: Diageo PLC files objections against DRT Order

Mallya Case: Diageo PLC files objections against DRT Order
British liquor giant Diageo and two of its subsidiaries on Tuesday filed their objections in the Debt Recovery Tribunal here against its last month order, barring liquor baron Vijay Mallya from withdrawing $75 million exit payout by it under a sweetheart deal till the disposal of SBI’s case against him over loan default.

After submission of the objection copies by Diageo PLC, Diageo Netherlands and United Spirits Ltd (USL), owned by the UK-based firm, which are among the defendants, DRT Judge Benakanahalli posted the matter for next hearing on April 13.

Other defendants, including Kingfisher Airlines Limited, gave an undertaking that they would file objections to the DRT’s March 7 order later.

The DRT had barred Mallya from withdrawing $75 million exit payment from Diageo till the disposal of the case over the loan default by Kingfisher Airlines. It had also restrained Diageo and United Spirits Ltd, owned by the UK-based firm, from temporarily disbursing the amount to Mallya, who worked out the deal under a severance package.

The DRT had asked Diageo PLC, Diageo Netherlands and USL to furnish details of the termination agreement between them. The tribunal had also ordered that the amount be attached till the disposal of the original application filed by the State Bank of India (SBI) in 2013. SBI, which leads the consortium of 17 banks that lent money to Kingfisher Airlines, had moved DRT here against the airline’s chairman Mallya in its bid to recover over Rs 7,000 crore of dues from him.
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