BENGALURU — An Indian tribunal, heeding a call from a group of creditor banks, has blocked a $75m settlement agreed between Diageo and liquor baron Vijay Mallya, after he was ousted from the spirits giant’s local unit last month.Banks owed money by Mr Mallya’s now defunct Kingfisher Airlines had demanded "first right" to the Diageo cash, arguing they had been left with hefty unpaid debts — $1.4bn as of September 2013 — when the airline collapsed more than three years ago.Mr Mallya, a household name in India and the face of one of the country’s most high-profile collapses, agreed the settlement with Diageo after stepping down as chairman of Diageo-controlled United Spirits, following months of wrangling.Mr Mallya had been due to receive $40m of the settlement immediately, and the remainder over five years.The Debt Recovery Tribunal in Bengaluru would next hear the case on March 28, it said on Monday, asking Mr Mallya, Diageo and United Spirits to make public the details of their agre...
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