Tribunal to rule first on stopping severance package.
The Bengaluru Bench of the Debt Recovery Tribunal on Friday reserved its order till March 7 on an application by the State Bank of India-led consortium of banks seeking a garnishee order against 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 Bench said it would take up the hearing of the consortium’s three other applications — for the arrest of Mr. Mallya, seizure of his passport and for getting full disclosure of his assets in the country and abroad — after ruling on the application for a garnishee order against Diageo Plc.
The applications were filed in the proceedings to recover money borrowed by the Mallya-owned Kingfisher Airlines Limited (KFL) from various banks
Counsel for the consortium said Mr. Mallya should be immediately restrained from receiving the sum from Diageo Plc which had struck a deal with him by offering him $75 million in lieu of his stepping down as chairman of United Spirits Ltd.
Counsel for SBI expressed the fear that Mr. Mallya might not be available in India because he, according to media reports, was planning to settle down in London.