Vijay Mallya gives $40 million of Diageo payout to children

Response came after repeated court orders asking UB Group chairman Vijay Mallya to disclose complete details of his overseas assets till date


Vijay Mallya. Photo: PTI
Vijay Mallya. Photo: PTI

New Delhi: UB Group chairman Vijay Mallya on Thursday said the sum of $40 million received towards the $75-million debt settlement with London-based liquor major Diageo Plc in February has been transferred to his three children through gift settlements.

In an affidavit submitted before the apex court, he stated that the money had been transferred to his three children—Siddharth, Leena and Tanya Mallya—who were US citizens and sole beneficiaries of the three respective trusts of which he had no control in his individual capacity.

Mallya had received a payment of $40 million out of a $75 million package from Diageo following his resignation as chairman of United Spirits Ltd in February.

The response came after repeated court orders asking Mallya to disclose complete details of his overseas assets till date, including the $40 million received from Diageo.

A consortium of banks, led by the State Bank of India, had moved the apex court claiming the UB chairman failed to furnish full details of his assets.

Mallya had been directed by the court in April to disclose all the assets held by him and his family, after the consortium of creditors spurned his offer to repay $ 40 million to settle the debt of Kingfisher Airlines.

Last week, the Karnataka high court ordered the winding up of Kingfisher Airlines Ltd (KFA). Mallya and KFA, which owe a consortium of 17 banks Rs9,091 crore. The banks would have the first rights over the assets of KFA as secured creditors.

In this regard, it has been said that the consortium cannot proceed against Kingfisher Airlines without the permission of the Karnataka high court which had ordered winding up of the defunct airline.

The matter will be heard next on 15 December.

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