MALLYA GUILTY OF CONTEMPT
SC ASKS HIM TO APPEAR ON JULY 10
The Supreme Court on Tuesday found troubled liquor baron Vijay Mallya guilty of contempt and asked him to appear before it on July 10, an order expected to help India’s case to seek his extradition from the UK.
A bench of justice AK Goel and justice UU Lalit said the 61-yearold businessman had failed to submit details of all his assets, upholding a plea by a consortium of banks to which he owes more than ₹9,000 crore. The money is owed by his now-defunct Kingfisher Airlines that was grounded in 2012. The quantum of punishment will be decided after hearing him. The businessman, who called himself king of good times, faces at least six months in jail.
The banks moved the court after Mallya transferred $40 million he received from Londonbased liquor major Diageo Plc in February 2016 to his three children instead of repaying the loan. The money was received towards the $75-million debt settlement with Diageo following his resignation as chairman of United Spirits Ltd.
Mallya hid details of his transaction with Diageo when he filed an affidavit in court sharing details of all his movable and immovable assets, the court said. He also failed to obey court’s order to appear before it.
Tuesday’s order is expected to give a boost to India’s effort to bring Mallya, who is wanted for alleged loan default and money laundering, back to India.
The Indian side can cite the top court’s order when the extradition case comes up for next hearing in a London court on May 17. After three failed auctions, the banks in April managed to sell Mallya’s Kingfisher villa in Goa to actor and beer baron Sachiin Joshi for ₹73.01 crore. The villa was among the assets Mallya pledged to lenders.
India has impressed upon the UK to expedite the request for extradition of Mallya and other Indian fugitives.