Diageo asks Tribunal to release Mallya's $70 million buyout

British liquor giant Diageo Plc filed an interlocutory application seeking the vacating of the DRT's order barring liquor baron Vijay Mallya from withdrawing his $75 million exit buyout till the disposal of a SBI case against him over a loan default.

"The Tribunal will decide which applications should be heard on the priority basis and also set a timeline for disposing all the pending applications," DRT Presiding Officer Benakanahalli said, posting the matter for a hearing on June 7.

On Thursday, Diageo Plc had filed the interlocutory application seeking the vacating of DRT's March 7 order. The DRT had barred Mallya from withdrawing his $75 million exit payment from Diageo until the disposal of a case over a loan default by Kingfisher Airlines.

It had restrained Diageo and United Spirits Limited, owned by the UK-based firm, from temporarily disbursing the amount to Mallya who worked out the deal under a severance package.

However, the $40 million of the $75 million severance package deal had already been disbursed, following which the bankers' consortium had sought directions from the Tribunal to attach the amount before it.

Following a directive of the Tribunal, Diageo Plc and its two subsidiaries submitted the details of the severance package deal, in which the bankers figured out that $40 million of the $75 million was parked in an account held by Vijay Mallya in the New York-based JP Morgan Bank.

On May 17, the DRT ordered JP Morgan Bank to not disburse to Mallya the $40 million and asked it to "attach" (submit) before it statements of accounts held by Mallya in the bank.