Mallya faces laundering case, bar on Rs 515 crore from Diageo
Vijay Mallya was hit by a double whammy on Monday as a Debt Recovery Tribunal restrained him from accessing the `515 crore that he was to receive from Diageo Plc as settlement, while the Enforcement Directorate filed a money laundering case against the flamboyant businessman, who not long ago was known as the king of good times.
The $75 million deal with Diageo was struck last month to get Mallya to relinquish the chairmanship of United Spirits Ltd (USL), which the British spirits maker now owns.However, Mallya will not be able to get hold of the cash, at least for the time being, with the DRT responding to a petition by SBI and others banks to whom he owes over 6,000 crore.
The tribunal’s presiding officer passed an interim order asking Mallya not to recei ve the money and the two corporate entities, Diageo and USL, not to disburse the amount during the pendency of the application filed by SBI and other banks. The banks say they have lent about `6,300 crore to the now defunct Kingfisher Airlines Ltd (KAL).
If this was not enough, the ED also registered a case against Mallya, and the former chief financial officer of Kingfisher Airlines for fraudulently obtaining a `900 crore loan from IDBI Bank and laundering the money . Four senior IDBI Bank executives are also accused in the case.
amar ujala newspaper 8/03/2016 : http://epaper.amarujala.com/login.php