Banks move SC against Mallya
A consortium of banks on Thursday moved the Supreme Court seeking initiation of contempt of court action against Vijay Mallya, now in exile in the United Kingdom as he failed to disclose his true assets as ordered by the court in April.
Attorney General Mukul Rohatgi made a mention before a Bench of Justices Kurian Joseph and Rohinton Nariman for urgent listing of the application. The AG representing the banks told the Court the disclosure of assets by Vijay Mallaya as ordered by this court is vague; he had not disclosed his full assets, including foreign and cash assets of ` 2,500 crores. The bench agreed to hear the matter on July 18.
On April 26, the court directed Mallya to furnish to the consortium of banks details of the assets, his estranged wife and children in India and abroad. The details furnished by him in a sealed cover were ordered to be shared with the banks. The banks which had scrutinised the assets found that most of the details were missing and some information was vague. Hence it sought a direction to Mallya to initiate contempt of court action.
Mallya had taken a stand that such information can be shared only if there is an assurance that they will not be used for any other proceedings. It was argued that at the time of granting loans, only domestic assets were put under consideration by the lenders. Hence, the banks cannot claim details of his foreign assets. Mallya said the real intention of banks is not for settlement but to see that he is sent to jail.
The AG submitted that Mallya has disobeyed and failed to comply with the court orders to put on record details of his assets, apart from disabling banks to assess his ability to repay the loan. The banks cannot accept Mallya’s proposals offering settlement till assets’ disclosure and further that his personal guarantee is indispensable for recovery of dues.