Kingfisher Airlines, United Breweries submit evidences before Debt Recovery Tribunal

Kingfisher Airlines and United Breweries (Holdings) Ltd. on Thursday submitted their evidence before the Debt Recovery Tribunal (DRT), which is seeking to recover un-serviced debts of over Rs. 9,000 crore, in connection with the hearing of the applications filed by public sector lender State Bank of India (SBI) presently leading 17 secured creditors against liquor baron Vijay Mallya.

The court has granted other defendants, who have not filed their evidence, time till Friday to submit their response. The matter will now be heard on a daily basis.

The tribunal had on May 17 directed the J.P. Morgan Bank not to disburse the $40 million deposited by British liquor giant Diageo in favour of Mallya.

The DRT had also directed the bank to provide a statement of the 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 a 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.