Vijay Mallya can't withdraw Rs515 cr to be paid by Diageo, rules court

Submitted by alvin on Mon, 2016-03-07 18:14 Bengaluru: In a major setback for industrialist Vijay Mallya, the Debt Recovery Tribunal ruled that Mallya can't withdraw the Rs515 cr ($75 mn) which Diageo had agreed to pay as severance package to Mallya for resigning as chairman of United Spirits. The DRT was hearing the plea of State Bank of India seeking the lenders’ first right on the $75-million payout from Diageo to Mallya. The ruling would cheer up nationalised banks to whom Mallya owes more than Rs7,000 cr. Earlier, the Enforcement Directorate registered a money laundering case against Mallya and chief financial officer of now-defunct Kingfisher Airlines on the basis of a CBI probe into alleged wilful default of Rs900 crore loan in conspiracy with IDBI Bank officials.