In an effort to intensify efforts to recover dues worth Rs 9,000 crore in loans to the now Kingfisher Airlines, a consortium of 13 banks tried unsuccessfully to convince the Supreme Court to order his presence at the next hearing. According to Attorney-General Mukul Rohatagi – who is appearing for the banks – Mallya was most probably in London after having left India on 2 March.
A senior finance ministry official, speaking to The Economic Times, confirmed that the government would leave no stone unturned in their efforts to bring Mallya back, including seeking extradition if necessary. The UK government may be asked to ensure that a $75 million payment from Diaego is withheld.
SC Bench Gives Mallya Two Weeks to Respond
On Wednesday, the apex court issued notice to Mallya over the lenders’ plea seeking to stop him from leaving the country. A bench comprising justices Kurian Joseph and Rohinton F Nariman gave Mallya two weeks to respond.
The next hearing is scheduled for 30 March.
The apex court expressed surprise at how long the Kingfisher Airlines case has been pending before the Debt Recovery Tribunal in Bangalore. Rohatgi said the proceedings have been pending since 2013. So far, there have been at least 500 hearings in the case before tribunals in Goa and Bengaluru.
$40 m Was Paid to Mallya Immediately: Diageo
The creditor-banks and enforcement agencies, including the Enforcement Directorate that has launched a money laundering probe against Mallya, swooped on him days after Diageo said on 26 February that it had agreed to pay him $75 million in return for resigning as chairman of United Spirits, which it acquired from the Indian businessman.
Mallya may also have got a significant part of the payment from Diageo as he left the country, The Times of India reported on Wednesday.
Diageo confirmed this to the Livemint.
Diageo’s London Stock Exchange Announcement notes on page 2, bullet 2 say that Diageo paid $40 m immediately on signing (of the agreement by Mallya) on 25 February 2016.Diageo Statement
According to the terms of payment outlined by Diageo, $40 million was to be paid immediately, with the balance payable over the next five years.
Also Read:
Vijay Mallya and the Art of Fleeing
How Vijay Mallya Became SBI’s ‘Wilful Defaulter’
Vijay Mallya’s Long Summer, as DRT Freezes Funds from Diageo
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