On the severance package, Mallya said the payments are towards his personal non compete obligations globally except in the UK.
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Counsel for the consortium said Mr. Mallya have to be instantly controlled from accepting the sum from Diageo Plc which had hit an agreement with him by offering him $75 million in lieu of his venturing down as an executive of United Spirits Ltd.
As well as seeking Mallya’s arrest, the consortium of bankers and creditors led by the State Bank of India (SBI) is trying to lay claim to a $75 million severance payout from Diageo.
The Debt Recovery Tribunal, however, reserved an order on one of the four applications filed by State Bank of India, seeking securement of the lenders’ first right on the payout from Diageo to Mallya.
They’ve declared him a “wilful defaulter” of 7,000 crores of loans that his now defunct, Kingfisher Airlines, took from them.
SBI has Rs.1,600 crore of exposure to Kingfisher. State Bank of India had filed the petition with the DRT after Mallya signed a deal with United Spirits Ltd’s parent company, Diageo last week that gets him $75 million or Rs 500 crore over five years, in lieu of him quitting the chairmanship of the former.
The United Spirits board began a process last April to remove Mallya as the company’s chairman due to alleged financial irregularities.
However I feel that the time has come to clarify my position in order to avoid this relentless attack on my reputation.
“The truth about Kingfisher Airlines and its financial stress due to external factors has been reported by SBI to the RBI in their letter dated 31st January 2012”.
“Thus, the aggregate cash recovery/security available is Rs.2,494 crore”, Mallya claimed in the statement.
Last year, the SBI declared the tycoon a “wilful defaulter” for not repaying loans made to Kingfisher Airlines. “I have legally challenged these declarations”, he said. He also said his conglomerate UB Group has directly invested over Rs 4000 crore into Kingfisher which stands fully impaired “it is not as though it is only the bank debt that has suffered. The banks will recover a substantial part of their debt my groups loss is permanent”, he said. “Absent any fraud, the concept of corporate limited liability can not be ignored”, Mallya said. Who all have been protecting Mallya?
In a statement issued on Sunday evening, Mallya said that he had been “most pained as being painted as an absconder”.
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He further said: “Over the years, I have built successful businesses in India and overseas”.
