Tribunal halts Diageo’s $75 million payment to Vijay Mallya

The Bengaluru Bench of the Debt Recovery Tribunal on Friday issued temporary garnishee order asking the U.K.-based Diageo Plc. to restrain it from paying a $75 million severance package to industrialist Vijay Mallya and deposit the sum with the tribunal.

The Debt Recovery Tribunal ruled in favour of a group of creditor banks, to whom Vijay Mallya's now defunct Kingfisher Airlines owes money.

Presiding officer of the Tribunal C.R. Benakanahalli passed the order on an application filed by the State Bank of India-led consortium of banks in a proceeding initiated for recovering the money that the Mallya-headed Kingfisher Airlines Limited borrowed from the consortium of banks.

According to the banks, the total outstanding has now touched Rs.10,000 crore along with interest and other component.

Posted by on March 7, 2016. Filed under State. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.