BUSINESSDecision on banks' first right on Mallya's Rs 515 crore deal tomorrow
Mar 6, 2016, 05.41 PM IST
BENGALURU: The Debt Recovery Tribunal (DRT) will on Monday pass orders on the state-owned SBI's application seeking the lenders' first right on the Rs 515 crore ($75-million) payout from Diageo to UB Group promoter Vijay Mallya under a recent sweetheart deal.
DRT had reserved its order after hearing the submissions made by both parties — bankers and Mallya — on March 4.
George Joseph, a counsel for bankers, said orders will be passed on Monday.
SBI had filed three other applications, including one seeking Mallya's arrest and impounding of his passport, as the bank approached DRT seeking action against him for defaulting on loans.
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DRT had taken up, on a priority basis, the application for securing the first right on the $75 million severance package.
The tribunal had said it would hear the other three applications at a later date.
SBI, which leads the consortium of 17 banks that lent money to the grounded Kingfisher Airlines, had moved DRT here against the airline's chairman Mallya in its bid to recover over Rs 7,000 crore of dues from him.
DRT had reserved its order after hearing the submissions made by both parties — bankers and Mallya — on March 4.
George Joseph, a counsel for bankers, said orders will be passed on Monday.
SBI had filed three other applications, including one seeking Mallya's arrest and impounding of his passport, as the bank approached DRT seeking action against him for defaulting on loans.
READ ALSO:
Investors slam $75m exit deal for Mallya
DRT had taken up, on a priority basis, the application for securing the first right on the $75 million severance package.
Top Comment
I don't know what the law says, but I feel salaries of unpaid employees of King Fisher should get the first right. As regards Banks, officers who showed undue favours to Mallya should also be held ac... Read MoreThe tribunal had said it would hear the other three applications at a later date.
SBI, which leads the consortium of 17 banks that lent money to the grounded Kingfisher Airlines, had moved DRT here against the airline's chairman Mallya in its bid to recover over Rs 7,000 crore of dues from him.
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