KFA lenders to move Debt Re­cov­ery Tri­bunal

Hindustan Times ST (Mumbai) - - NATION - Press Trust of India

NEW DELHI: The con­sor­tium of 17 lenders to the long-grounded King­fisher Air­lines have de­cided to move the Debt Re­cov­ery Tri­bunal (DRT) against the air­line chair­man Vi­jay Mallya to stake claim to the $75-mil­lion sev­er­ance pack­age he will be get­ting for quit­ting United Spir­its (USL).

Last week, Mallya quit as chair­man of USL af­ter Di­a­geo, the ma­jor­ity owner of the coun­try’s largest liquor com­pany, agreed to pay him $75 mil­lion (₹515 crore) in a sweet­heart deal, which has since then come un­der the lens of the Se­cu­ri­ties and Ex­change Board of India’s (Sebi’s) as well as mi­nor­ity share­hold­ers.

“Since Mallya had given per­sonal guar­an­tees for the loans given to King­fisher, this money (which he will re­ceive from Di­a­geo) be­longs to us. We have de­cided to move to the DRT to cial of a pub­lic sec­tor bank said.

“We are mak­ing all-out ef­forts to get our money back,” another state-run bank of­fi­cial said.

Mallya and King­fisher Air­lines (KFA) owe ₹7,800 crore to a con­sor­tium of lenders led by State Bank of India, which has an ex­po­sure of over ₹1,600 crore to the now de­funct air­line.

Di­a­geo au­di­tors had found Mallya had di­verted ₹7,200 crore of USL funds to King­fisher Air­lines, which was later di­verted else­where. He is also fac­ing probe for al­legedly si­phon­ing off over ₹1,300 crore from United

Mallya: more trou­ble fly­ing in

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