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DRT questions Diageo's delay in furnishing dealdetails

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Press Trust of India Bengaluru
Last Updated : Apr 29 2016 | 5:49 PM IST
The Debt Recovery Tribunal(DRT) here today questioned Diageo Plc about the delay in furnishing details of the USD 75 million severance package agreed upon between beleaguered tycoon Vijay Mallya and the company.
"In my earlier ruling as well, I had directed the company to furnish the details of the severance package... Why it has not been placed before this court yet?" DRTPresiding Officer C R Benakanahalli asked the company's counsel during the resumed hearing on applications filed by SBI-led bankers' consortium.
SBI had filed an application for securing first right on the USD 75 million severance package Diageo has agreed to pay Mallya for quitting as Chairman of the company-owned United Spirits (USL) under a sweetheart deal.
The other three applications sought impounding ofMallya's passport, getting him arrested and fulldisclosure of his assets in the country and abroad.
Taking cognisance of delay in furnishing details of the severance package, Benakanahalli directed Diageo Plc to submit the same by May 12.
Benakanahalli, however, overruled the plea of thebankers to take up the matter on daily basis, saying that hewould rather hear it on priority basis.

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"As per the Supreme Court's direction, I have to complete the court proceedings into the matter in two months from the date of commencement of the hearing, so I will take the matter up on priority basis, not on daily basis, as I have many other cases pending before me, which also need timely disposal," he said.
He then posted the matter for next hearing onJune 2.
Mallya, whose now-defunct group company Kingfisher Airlines owes over Rs 9,000 crore to 17 banks, left the country on March 2 and is in the UK.
The embattled tycoon, in an interview to FinancialTimes today, said he is in a "forced exile" and has noplans to return to India where things are flying at him "fast and furious".
Mallya, whose passport was revoked this month, said he wants a "reasonable" settlement with creditor banks for his defunct airline, but they "are not getting any money" by taking his passport or arresting him.

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First Published: Apr 29 2016 | 5:49 PM IST

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