The State Bank of India (SBI)-led consortium of lenders has moved the debt recovery tribunal (DRT) to attach defunct carrier Kingfisher Airlines’ promoter Vijay Mallya’s passport.
The consortium also appealed that the funds Mr. Mallya will receive from Diageo be kept in an escrow account till the liquor baron clears the dues.
London-based Diageo, which controls United Spirits Ltd., had last week agreed to pay Mr. Mallya $75 million as part of a deal that would see him step down as chairman and non-executive director of USL.
Diageo said it had absolved Mr. Mallya of all liabilities with regard to alleged financial regularities in the past. The company would pay Mr. Mallya $40 million immediately with the balance to be paid over a five-year period. Kingfisher Airlines has close to Rs.7,000 crore dues.
The carrier was grounded in October 2012 and its permit suspended the same month. Mr. Mallya’s spokesperson declined comment.