<p>The High Court on Friday ordered issue of notice to businessman Vijay Mallya and his companies, Kingfisher Airlines Limited and United Breweries (Holdings) Limited in a petition filed by State Bank of India and 12 other banks seeking directions to the Debt Recovery Tribunal (DRT) to pass orders at the earliest on the interlocutory applications filed by the banks.<br /><br /></p>.<p>The banks, in their IAs, have sought directions to arrest Mallya and impound his passport for defaulting on loans worth Rs 7,800 crore. The consortium has also sought full disclosure of the industrialist’s assets. State Bank of India had filed the petition with the DRT after Mallya signed a deal with United Spirits Ltd’s parent company, Diageo last week that gets him $75 million or Rs 500 crore over five years, in lieu of him quitting the chairmanship of the former. <br /><br />SBI, which leads a consortium of banks that lent to Mallya, declared him a wilful defaulter in October 2015. Mallya’s Kingfisher, now defunct since October 2012, owes SBI and the consortium of 17 banks over Rs 7,800 crore in loans raised to run the airline. <br /><br />Last year, Mallya made a deal with Diageo Holding Netherlands and United Spirits Limited, where the latter reported financial irregularities and fund diversion to the tune of Rs 7,200 crore when Mallya ran the company. The USL board has recommended to Diageo to evict Mallya from the company, after it lost confidence in him due to the fraud.<br /><br />The banks have moved the DRT to secure their first right on the $75-million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its chairman. <br /><br />The deal says that Diageo would pay $40 million immediately to Mallya with the balance being payable in equal installments over the next five years. It will also absolve Mallya of all liabilities over alleged financial lapses at the company founded by his family. Justice AS Bopanna ordered notice and adjourned the hearing.<br /><br /></p>
<p>The High Court on Friday ordered issue of notice to businessman Vijay Mallya and his companies, Kingfisher Airlines Limited and United Breweries (Holdings) Limited in a petition filed by State Bank of India and 12 other banks seeking directions to the Debt Recovery Tribunal (DRT) to pass orders at the earliest on the interlocutory applications filed by the banks.<br /><br /></p>.<p>The banks, in their IAs, have sought directions to arrest Mallya and impound his passport for defaulting on loans worth Rs 7,800 crore. The consortium has also sought full disclosure of the industrialist’s assets. State Bank of India had filed the petition with the DRT after Mallya signed a deal with United Spirits Ltd’s parent company, Diageo last week that gets him $75 million or Rs 500 crore over five years, in lieu of him quitting the chairmanship of the former. <br /><br />SBI, which leads a consortium of banks that lent to Mallya, declared him a wilful defaulter in October 2015. Mallya’s Kingfisher, now defunct since October 2012, owes SBI and the consortium of 17 banks over Rs 7,800 crore in loans raised to run the airline. <br /><br />Last year, Mallya made a deal with Diageo Holding Netherlands and United Spirits Limited, where the latter reported financial irregularities and fund diversion to the tune of Rs 7,200 crore when Mallya ran the company. The USL board has recommended to Diageo to evict Mallya from the company, after it lost confidence in him due to the fraud.<br /><br />The banks have moved the DRT to secure their first right on the $75-million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its chairman. <br /><br />The deal says that Diageo would pay $40 million immediately to Mallya with the balance being payable in equal installments over the next five years. It will also absolve Mallya of all liabilities over alleged financial lapses at the company founded by his family. Justice AS Bopanna ordered notice and adjourned the hearing.<br /><br /></p>
