DRT allows banks to recover Rs 6,203 cr from Vijay Mallya

In a setback to Vijay Mallya, the Debt Recovery Tribunal (DRT) Thursday allowed SBI-led consortium to petition against the liquor baron. The tribunal has ordered payment of Rs 6,203 crore with an interest of 11.5 percent by Kingfisher Airlines (KFA), United Breweries Holding (UBHL), Mallya and Kingfisher Finvest.DRT Bengaluru has allowed payment of dues from the year 2013, the inception date of the original application of the 14 banks. The order implies that the banks can go after Mallya and all his personal assets to recover their dues. And, if Mallya has to go on an appeal to Debt Recovery Appellate Tribunals (DRAT) then about 50 percent  of the due amount will have to be paid as court fees, which is close to Rs 300 odd crore. SBI had filed three other applications also, including one seeking Mallya's arrest and impounding his passport, for "defaulting" on loans. Mallya, who left the country on March 2 last year and is now in the UK, has been declared Proclaimed Offender by a special PMLA court in Mumbai on a plea of Enforcement Directorate in connection with its money laundering probe against him in the alleged bank loan default case. During the prolonged hearing, the DRT had disposed some of the IAs filed by either side. The DRT had on March 7 last year, restrained Mallya from withdrawing USD 75 million exit payment from British liquor giant Diageo as part of a severance package for quitting Diageo-owned United Spirits (USL) as its Chairman under a "sweetheart deal". However, on July 13, the tribunal ruled that the order had become "infructuous" as USD 40 million had already been transferred prior to the March 7 directive. Later, passing orders on another IA, the tribunal had directed Diageo Plc to deposit with it the remaining USD 35 million of the "sweetheart deal". The DRT had on July 16 allowed another IA of the bankers for lifting of corporate veil to pierce the protection against personal liability enjoyed by individuals controlling Kingfisher Finvest, a holding company of Mallya. It had also dismissed the IA filed by Dutch beer major Heineken seeking impleadment in the Mallya case to enjoy Right of First Refusal over UBL shares. Heineken has some presumptive rights on UBL shares held and owned by Mallya.(With inputs from PTI)