DRT directs bank not to disburse amount deposited by Diageo in Mallya's favour

DRT directs bank not to disburse amount deposited by Diageo in Mallya

Submitted by alvin on Tue, 2016-05-17 20:00 New Delhi: The Debt Recovery Tribunal (DRT) on Tuesday directed the J.P. Morgan Bank not to disburse the 40 million USD amount deposited by British liquor giant Diageo in favour of liquor baron Vijay Mallya.The DRT also directed the bank to provide statement of transaction since February 25, 2016, till date. It also directed the bank to attach the shares held by Mallya in the companies.The court passed an ex-party order while hearing the petition that was filed by consortium of banks led by the State Bank of India seeking the same.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. (ANI)