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SBI wants Vijay Mallya arrested, passport encaged

SBI wants Vijay Mallya arrested, passport encaged

The Delhi high court refused on Thursday to hear a plea by businessman Vijay Mallya against State Bank of India (SBI) terming him a “wilful defaulter” and requested him to approach a suitable news forum.

SBI has transferred four applications against the UB Group advocate before the Debt Recovery Tribunal (DRT), seeking the very first right on the $75 million (about Rs 500 crore) severance package that Mallya will get from Diageo, the UK-based spirits major that’s taken control of Mallya’s main United Spirits.

SBI wants Vijay Mallya arrested, passport encaged

SBI wants Vijay Mallya arrested, passport encaged

SBI declared Mallya and his firm United Breweries Holdings Ltd (UBHL) wilful defaulters in late 2015 after a protracted legal fight over nonpayment of dues of over Rs 7000 crore owed by his now-defunct Kingfisher Airlines.

Feeling the mood of the court, Mallya’s counsel requested Justice Rajiv Sahai Endlaw to permit them to remove their request including one.

While allowing them the freedom to approach a suitable court for remedial measures, if accessible under law, the court permitted Mallya’s request, made through senior supporter Rajiv Nayar.

He alleged the determination of the grievance redress committee refusing legal representation at a hearing of SBI held by the bank on October 29, 2015 while declaring him as wilful defaulters and UBHL is prohibited.

The court said it cannot have two seats hearing the same issue.

“The Bombay high court has previously heard it. This should even be before that court simply. What is the trouble,” the court requested.

The very best state-run lender asked for his passport and had on Wednesday sought arrest of Mallya. It’s also found complete disclosure of the industrialist’s assets.

The immediate goal of the lenders transferring the DRT is to procure a first right on the US$75-million severance package that Mallya will be receiving for leaving Diageo-owned United Spirits (USL) as its chairman.

As an element of the deal, Diageo said it would pay US$40 million promptly to Mallya with the balance being payable in equal instalments over the following five years. It will absolve Mallya of all responsibilities over alleged fiscal lapses at the firm founded by his family.