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As banks tighten noose, question arises: where is Vijay Mallya?

The Times of India reports that Vijay Mallya may have already moved abroad along with the first tranche of $75 million settlement he made with Diageo

BS Web Team  |  Mumbai 

Vijay Mallya waves in the paddock during the third practice session of the Indian F1 Grand Prix at the Buddh International Circuit in Greater Noida, on the outskirts of New Delhi
Vijay Mallya waves in the paddock during the third practice session of the Indian F1 Grand Prix at the Buddh International Circuit in Greater Noida, on the outskirts of New Delhi

Even as a consortium of 17 banks has moved the Supreme Court to freeze Vijay Mallya’s passport, the liquor baron may have left the country already. Moreover, he has also received more than half of the amount in the $75-million settlement he made with Diageo, according to media reports.

Mallya is believed to have left for a foreign destination a few days ago, The Times of India reported. He had expressed his desire to settle in London.

Chief Justice TS Thakur agreed to list the petition of banks on Wednesday. Mallya has been declared a wilful defaulter and has a huge debt of Rs 9,091 crore to the banks. The banks in their plea said that the high court order had failed to protect their interest. They were yet to recover the amount from him, the airline and the brewery companies.

Meanwhile, a report in The Times of India also said that the businessman had received the first tranche — $40 million — of the $75-million exit deal with Diageo, citing disclosures by the company. The agreement’s fine-print, inked on February 25, said, “Diageo will pay $40 million of this amount immediately with the balance being payable in equal instalments over five years. Diageo's payment obligations are subject to Mallya's ongoing compliance with the terms of the agreement.”

The Debt Recovery Tribunal, had on Monday, directed Diageo to not pay the amount to Mallya till the petition by State Bank of India (SBI) had closed. The tribunal was set to hear the case next on March 28.

I-T refunds, payment to foreign employees

Women employees of the Kingfisher Airlines have accused the UB Group chairman of double standards by not paying the local employees, while honouring employees from foreign countries.

An association of employees has also said that they could not claim income tax (I-T) refunds and provident fund (PF) dues as the airline had not deposited the money deducted from employees.

First Published: Wed, March 09 2016. 09:09 IST
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