vijay mallya supreme court

Supreme Court Hands Vijay Mallya Four Month Sentence in Contempt Case

A three-judge bench of Justices U.U. Lalit, Ravindra Bhat and P.S. Narasimha also imposed a Rs 2,000 fine on Mallya.

New Delhi: The Supreme Court on Monday awarded a four-month sentence to fugitive businessman Vijay Mallya in a contempt case.

Observing that it must impose adequate punishment upon the contemnor in order to maintain the majesty of law, a bench headed by Justice U.U. Lalit also imposed a Rs 2,000 fine on Mallya.

Mallya is accused in a bank loan default matter of over Rs 9,000 crore involving his defunct Kingfisher Airlines.

“Considering the facts and circumstances on record and the fact that the contemnor never showed any remorse nor tendered any apology for his conduct, we impose sentence of four months and fine in the sum of Rs 2,000,” the bench said while pronouncing the order.

The apex court had in 2020 dismissed Mallya’s plea seeking a review of the May 2017 verdict which had held him guilty of contempt for transferring $40 million to his children in violation of court orders.

While pronouncing the order on Monday, the bench said the contemnor and beneficiaries of the transactions, referred to in its May 2017 verdict, shall be bound to deposit the amount received by them along with eight per cent interest per annum with the recovery officer concerned within four weeks.

“In case the amounts are not so deposited, the recovery officer concerned shall be entitled to take appropriate proceedings for recovery of the said amount and the Government of India and all agencies concerned shall extend assistance and complete cooperation,” it said.

The bench said the fine of Rs 2,000 imposed on Mallya be deposited in the registry of the apex court within four weeks and upon such deposit, the amount shall be handed over to the Supreme Court Legal Services Committee.

In case, the amount of fine is not deposited within the time stipulated, the contemnor shall undergo a further sentence of two months, it said.

“In the circumstances, in order to maintain the majesty of law, we must impose adequate punishment upon the contemnor and also pass necessary direction so that the advantage secured by the contemnor or anyone claiming under him are set at nought and the amount in question is available in execution of the decree passed in the concerned recovery proceedings,” the bench said.

Mallya has been living in the United Kingdom since March 2016. He is on bail on an extradition warrant executed by Scotland Yard on April 18, 2017.

During the hearing earlier, Mallya’s counsel had on March 10 told the apex court that he was handicapped in the absence of any instruction from his client, who is in the UK, and would not be able to argue on the quantum of sentence to be awarded in the contempt case.

Observing that it had waited “sufficiently long”, the apex court on February 10 had fixed the contempt case against Mallya for hearing and had given him the last opportunity to appear before it either personally or through his lawyer.

The top court had said it has given multiple opportunities to Mallya to appear either personally or through a lawyer and had even given specific directions in its order dated November 30, 2021.

Earlier, a consortium of lending banks led by the State Bank of India had moved the apex court alleging that Mallya was not following the court orders on repayment of the loan which was then over Rs 9,000 crore.

It was alleged that he was not disclosing the assets and moreover, transferring them to his children in violation of the restraint orders.

Solicitor general Tushar Mehta, appearing for the Union government, had earlier said that the court has inherent jurisdiction in contempt cases and that it has given enough opportunity to Mallya, which he has not taken.

On November 30 last year, the top court said it cannot wait any longer and the sentencing aspect in the contempt matter against Mallya would be dealt with finally.

Mallya was held guilty of contempt in 2017, and the matter was thereafter to be listed to hear him on the proposed punishment to be awarded to him.

The apex court had earlier noted that as per an office memorandum, under the signature of the deputy secretary (extradition) of the Ministry of External Affairs (MEA), the proceedings for extradition have attained finality and Mallya has “exhausted all avenues for appeal” in the UK.

(PTI)

Vijay Mallya Contempt Case: Supreme Court Rejects Plea To Review 2017 Decision

The fugitive businessman was held guilty of contempt for transferring $40 million to his children in violation of various judicial orders.

New Delhi: The Supreme Court on Monday dismissed a plea of fugitive businessman Vijay Mallya seeking review of its 2017 order holding him guilty of contempt of court for transferring $40 million to his children.

A bench comprising Justices U.U. Lalit and Ashok Bhushan said, “We do not find any merits. Review petition dismissed.”

The apex court had reserved its verdict on the review plea on August 27, 2020, after hearing arguments from both sides.

Mallya had filed the petition seeking review of the apex court’s May 9, 2017 order by which he was held guilty of contempt of court for transferring $40 million to his children in violation of the order.

The fugitive businessman, who is an accused in a bank loan default case of over Rs 9,000 crore involving his defunct Kingfisher Airlines, is presently in the UK.

The apex court’s 2017 order had come on a plea by a consortium of banks led by the State Bank of India (SBI), which had said that Mallya had allegedly transferred $40 million received from British firm Diageo to his children in “flagrant violation” of various judicial orders.

(PTI)

Indian Banks Back in UK Court Over Mallya’s Non-Payment of Debt

A previous UK High Court ruling had refused to overturn a worldwide order freezing Mallya’s assets.

London: A consortium of Indian public sector banks led by State Bank of India (SBI) is back in the UK high court to seek a bankruptcy order against liquor tycoon Vijay Mallya over the alleged unpaid debt of around 1.145 billion pounds.

Judge Michael Briggs is presiding over a hearing in the insolvency division of the court in London this week in relation to a bankruptcy petition filed by the banks back in 2018 in their attempt to recoup unpaid debt accrued by the now-defunct Kingfisher Airlines.

A previous UK High Court ruling had refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that the consortium of 13 Indian banks was entitled to recover funds amounting to nearly 1.145 billion pounds.

The banks then launched efforts to recover dues as part of the freezing order, with the bankruptcy petition aimed at seizing UK-based Mallya’s assets to recover the dues.

Besides SBI, the 13 Indian banks include Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd.

They have secured follow-on High Court orders to recover some of the funds owed to them as a result of Kingfisher Airlines’ unpaid loans.

Also read: Vijay Mallya Makes Another Offer of 100% Loan Payback to Public Sector Banks

In July, the banks had won a High Court battle to access documents they were after to establish the true ownership of assets they believed were linked with the embattled liquor tycoon.

“Frankly, the answer needs to be known as to which assets are that of Mr. Mallya, both for the purpose of the worldwide freezing order and enforcement of the judgment,” Justice Robin Knowles had ruled.

Two superyachts, a game reserve in South Africa, numerous undeclared high-value and vintage cars, valuable paintings and a piano previously owned by famous British singer-songwriter Elton John were among some of the assets on their target list.

The true ownership of a plush home overlooking Regent’s Park in the heart of London also remains in contention.

Mallya’s legal team has argued that the petition for bankruptcy in the UK should be dismissed because the banks are pursuing the same debt through the Indian courts.

The lawyers have also sought a stay on proceedings until Mallya’s appeal against his extradition order, scheduled in the Royal Courts of Justice in London, is heard in February next year.

Meanwhile, Mallya remains on bail pending the appeal hearing in the extradition proceedings brought by India in relation to charges of fraud and money laundering amounting to an alleged Rs 9,000 crores.

He had been arrested on an extradition warrant back in April 2017 and has been fighting his extradition in the UK courts since then.

(PTI)