JP Morgan Bank told not to disburse $40 mn to Mallya

In another blow to beleaguered businessman Vijay Mallya, the Debt Recovery Tribunal (DRT) on Tuesday directed New-York based JP Morgan Bank not to disburse to him $40 million of the $75 million sweetheart deal struck between him and Diageo PLC. The DRT also took the bankers to task for not exercising due diligence and take appropriate action to prevent Mallya from receiving $40 million.

The Tribunal also directed JP Morgan Bank to “attach” (submit) before it the statements of account held by Mallya in the bank there. DRT Presiding Officer Benakanahalli also directed companies, including Watson Limited, a Mallya-affiliated firm, to attach shares before the tribunal.