DRT orders Diageo not to disburse Rs 500 crore to Vijay Mallya

Bengaluru, March 7: The Debt Recovery Tribunal at Bengaluru an interim order on Monday, March 7 ruled that Diageo cannot disburse 75 million US dollars or Rs 500 crore to Vijay Mallya. While hearing a batch of petitions on Monday, March 7 the DRT ruled that the money shall not be disbursed until the disposal of the case.

The case has been posted to March 28th for hearing next. The tribunal was hearing a batch of petitions filed by State Bank of India and others which had sought a directive that the Rs 500 crore be given to them since Mallya had debts.

Among the other directives sought in the petition were seizure of Mallya's passport, attachment of properties and an arrest order in case he fails to repay the money. The banks have alleged that Mallya owes them up to Rs 7,200 crore.

Earlier during the day the Enforcement Directorate registered a money laundering case against Mallya based on an FIR filed in 2015 by CBI in a case relating to a default of Rs 900 crore loan from the IDBI bank

They said while the ED's zonal office has registered the case, sleuths are also looking at the overallfinancial structure of the now defunct Kingfisher airlines and a separate probe under foreign exchange violation charges could also be initiated.

"Mallya and others will soon be questioned, ED officials pointed out."

OneIndia News