Beleaguered liquor baron Vijay Mallya has filed an application in the Karnataka High Court for recalling its order summoning him for allegedly violating an undertaking given by him and his companies not to transfer his equity shares in United Breweries to Diageo Plc. When it came up for hearing last week, the court adjourned it to December 2.
On October 20, a division bench comprising justices Jayant Patel and Aravind Kumar while passing orders on petitions by a consortium of banks led by State Bank of India, summoned Mallya to appear before it. The banks have accused the businessman of violating the undertaking given by him and his companies, including Kingfisher Airlines, not to transfer their equity shares in United Breweries Holdings Limited after Debt Recovery Tribunal had restrained Standard Chartered Bank. In their pleas, the banks alleged that despite the earlier order by DRT, Standard Chartered Bank was in the process of transferring to Diageo Plc the equity shares. Diageo Plc, the world's largest spirits maker, had issued a guarantee to the bank for a USD 135 million loan to Watson Limited, a firm affiliated to Mallya, to release certain UBHL shares that were to be acquired as part of the deal.
Meanwhile, to recover around £53.5 million due from Mallya, the service tax department is looking at having more participation when it re-auctions his luxury personal jet. The e-auction will be carried out by MTSC, the department said, adding that it had roped in a professional valuer for revaluation of the aircraft following a recent Bombay High Court order to do so at a reduced reserve price.
