E-Malt.com News article: India: Supreme Court finds Vijay Mallya guilty of contempt of court

The Supreme Court on May 9 found Vijay Mallya guilty of contempt of court and directed him to appear in the court on 10 July for arguing on quantum of punishment in the matter, FirstPost reported.

The liquor baron, who owes Indian banks Rs 9,000 crore, has been living in London since March last year, and the Indian government is pressing with the UK government for his extradition. Mallya fled to UK on 2 March 2016 pre-empting his likely arrest in India in the case of money laundering allegations.

This week's order pertains to Mallya's disclosure of assets in the court. Earlier on 9 March, the court had asked the beleaguered but flamboyant businessman whether he had truthfully disclosed his assets before the court or not.

The Supreme Court bench comprising Justices A K Goel and U U Lalit had asked Mallya if he had been truthful after a consortium of banks led by the State Bank of India alleged that $40 million was transferred by Mallya to his three children in complete violation of the Karnataka High Court order

Moreover, the fact that $40 million was received by Mallya from a United Kingdom-based company Diageo PLC was not disclosed before the court here, Attorney General Mukul Rohatgi, appearing for the banks, had alleged then.

The bench had taken note of the allegation, and wanted to know as to whether by transferring $40 million to his children, he violated the Karnataka High Court order in this regard or not.

The Karnataka High Court had earlier restrained Mallya from transferring or alienating any movable and immovable assets to any third party.

Mallya had received $40 million from Diageo as part of a $75 million sweet heart deal after he resigned as chairman of United Spirits in February 2016. He had quickly apportioned $40 million to his children, who are US citizens. He had disclosed this in an affidavit before the court in November 2016.

However, as per Rohatgi's submission before the court, Mallya had not disclosed the fund he received from Diageo and transferred to his three children in the assets he disclosed before the court.


08 May, 2017