Mallya case: DRT reserves order on SBI plea for lender’s right

The Debt Recovery Tribunal here on Friday reserved its order on state-run SBI’s application seeking securement of the lenders’ first right on the $ 75 million payout from Diageo to UB Group promoter Vijay Mallya under a recent sweetheart deal.

The State Bank of India has filed three other applications including one seeking arrest of Mallya and impounding of his passport, as the bank approached DRT seeking action against him for defaulting on loans.

SBI, which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, had moved DRT here against the airline’s chairman Mallya in its bid to recover over Rs 7,000-crore dues from him. DRT judge Benakanahalli, on priority basis, took up the application for securing a first right on the $ 75 million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its Chairman last week under a sweetheart deal.