DRT directs bank not to disburse amount deposited by Diageo in Mallya's favour

SBI sought DRT's intervention in seeking lenders' first right on $75-million payout from Diageo to Mallya as part of deal

The Debt Recovery Tribunal (DRT) on Tuesday directed the J.P. Morgan Bank not to disburse the $40 million (Rs 266 crore) amount deposited by British liquor giant Diageo in favour of liquor baron Vijay Mallya.

The DRT also directed the bank to provide statement of transaction since February 25, 2016, till date. It also directed the bank to attach the shares held by Mallya in the companies.

The court passed an ex-party order while hearing the petition that was filed by consortium of banks led by the State Bank of India seeking the same.

Diageo had on May 12 submitted the settlement agreement to the DRT.

The DRT in early March barred Mallya from accessing the $75 million (Rs. 515 crore) exit payment from Diageo till the loan default case with the SBI is settled.

The DRT, allowing an SBI plea, restrained Diageo from disbursing the money.

The SBI had sought the DRT's intervention in seeking the lenders' first right on the $75-million payout from Diageo to Mallya as part of the deal earlier in February.