Diageo to 'review' Debt Recovery Tribunal order, says $40 million paid to Vijay Mallya

LONDON/NEW DELHI: Caught in the controversy surrounding flamboyant businessman Vijay Mallya, British liquor giant Diageo today said it will "review" the Debt Recovery Tribunal's order freezing $75-million payout to him out of which has already paid $40 million.

Mallya has come under intense scrutiny in recent weeks after a sweetheart deal he inked with Diageo, the current controlling owner of United Spirits, under which he is getting Rs 515 crore ($75 million) to exit from the board of the company founded by his family and taken to the top by him.

Staking its claim on this payout deal stuck by Mallya in a sweetheart deal with Diageo, top lender SBI had approached the Tribunal that earlier this week barred the beleaguered businessman from accessing this exit payment till the loan default case with the state-run bank was settled.

Allowing SBI's plea, DRT in its interim order also restrained Diageo from disbursing the money for now and set March 28 as the next date of hearing.

A Diageo spokesperson, however, said that the initial payment of $40 million has already been made to Mallya.

"We understand that the Debt Recovery Tribunal is in the process of issuing an interim order which we will review once the full details are available," the spokesperson said in an e-mailed response.

When asked if Diageo had made any payments to Mallya, the spokesperson said referred to the company's London Stock Exchange filing stating that "Diageo paid $40m immediately on signing on 25 February 2016".

As part of their agreement Diageo agreed to pay Mallya, USD 75 million for stepping down as Chairman of United Spirits and for entering into a non-compete pact.