Indian bankers colluded with Vijay Mallya till he parked the loot abroad

The Consortium of Indian banks have not only given unsecured loans to liquor baron Vijay Mallya but also thwarted the debrt recovery proceedings against him, it is now learnt. Standard Chartered Bank charged the collusion of Bankers consortium led by State Bnk of India with Vijay Mallya during the hearing of its interlocutory petition seeking validation of the Debt Recovery Tribunal's interim order, preventing it from transacting with British liquor giant Diageo Plc. Appearing before the DRT, tribunal presiding officer C.R. Benkanahalli's counsel G. Krishnamurthy argued that the fact that Vijay Mallya did not object to the interim order stood clear testimony to the banks' collusion with the liquor baron. Why did Vijay Mallya not object? Because that would have prevented the sale and transfer of UBHL shares that were to be acquired by Diageo Plc. Diageo in turn had issued a guarantee to SCB for Rs 877 crore loan to Watson, a holding company of Mallya, counsel said. Diageo acquired the control of United Spirits in 2012. It had issued a guarantee to SCB for $135 million (Rs 877 crore) loan Watson to release certain UBHL shares that were to be acquired as part of the deal.