Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
The Economic Times
11,662.6074.25
Stock Analysis, IPO, Mutual Funds, Bonds & More

Diageo Holdings Netherlands files interlocutory application

All the parties, including Kingfisher, Diageo Plc and UBHL, pleaded today before the Tribunal to take up their applications on a priority basis.

PTI|
Updated: Jun 03, 2016, 08.15 PM IST
0Comments
DRT had barred Mallya from withdrawing $75 million exit payment from Diageo till the disposal of the case over the loan default by Kingfisher Airlines.
DRT had barred Mallya from withdrawing $75 million exit payment from Diageo till the disposal of the case over the loan default by Kingfisher Airlines.
BENGALURU: After British liquor giant Diageo Plc, Diageo Holdings Netherlands today filed an interlocutory application before the Debt Recovery Tribunal seeking vacating of DRT's order barring liquor baron Vijay Mallya from withdrawing USD 75 million exit buyout by it under a deal till disposal of SBI's case against him over loan default.

All the parties, including Kingfisher, Diageo Plc and UBHL, pleaded today before the Tribunal to take up their applications on a priority basis.

"The Tribunal will decide which applications should be heard on priority basis and also set a timeline for disposing all the pending applications," DRT Presiding Officer Benakanahalli said and then posted the matter for hearing on June 7.

Yesterday, Diageo Plc had filed the interlocutory application seeking vacating of DRT's March 7 order.

DRT had barred Mallya from withdrawing USD 75 million exit payment from Diageo till the disposal of the case over the loan default by Kingfisher Airlines.

It had restrained Diageo and United Spirits Limited, owned by the UK-based firm, from temporarily disbursing the amount to Mallya who worked out the deal under a severance package.

However, USD 40 million of the USD 75 million severance package deal had already been disbursed, following which the bankers' consortium had sought directions from the Tribunal to attach the amount before it.

Following a directive of the Tribunal, Diageo Plc and its two subsidiaries submitted the details of severance package deal, in which the bankers figured out that USD 40 million of the USD 75 million was parked in the account held by Vijay Mallya in New York-based J P Morgan Bank.

On May 17, DRT directed J P Morgan Bank not to disburse to Mallya USD 40 million and asked it to "attach" (submit) before it statements of accounts held by Mallya in the bank.

On the other hand, Vijay Mallya-controlled United Breweries (Holdings) Limited (UBHL) sought time to submit evidence and substantiate their claim of Rs 594 crore from bankers for compensating the losses incurred by it due to the sale of USL equity shares by lenders at cheaper rate.
0Comments
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service