Tribunal halted Diageo’s settlement with liquor baron Mallya

What a juicy scandal. An Indian tribunal, heeding a call from a group of creditor banks, has blocked the USD 75 million settlement between Diageo and Vijay Mallya, 60, after he agreed to step down as chairman from the spirits giant's local unit United Spirits in February 2016.

As Brauwelt International reported last week, several of Mr Mallya’s creditors were unhappy with the settlement. Now banks, which are owed money by Mr Mallya's defunct Kingfisher Airlines, demand a "first right" to the Diageo cash, arguing they had been left with hefty unpaid debts – reportedly USD 1.4 billion as of September 2013 - when the airline collapsed in 2012.

Alas, the injunction came too late. Diageo has since confirmed that Mr Mallya already received USD 40 million of the settlement.

Moreover, Mr Mallya left India on 2 March 2016 and is currently believed to be in London.

The Debt Recovery Tribunal in the southern Indian city of Bengaluru will hear the case on 28 March 2016.