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SC Gives Mallya 4 Weeks to Respond to Non-Disclosure of Assets Charges

Supreme Court Issues Notice to Mallya

Vijay Mallya, former chairman of United Spirits Ltd. (Photographer: Pankaj Nangia/Bloomberg)
Vijay Mallya, former chairman of United Spirits Ltd. (Photographer: Pankaj Nangia/Bloomberg)

The Supreme Court on Monday agreed to hear a contempt plea filed by State Bank of India-led consortium against Vijay Mallya, in the Rs 9,000 crore loan default case.

The apex court also issued a notice to Mallya, seeking an explanation on banks’ allegations of non-disclosure of assets. Mallya has been given four weeks to respond to the charges.

The Attorney General of India, Mukul Rohatgi, who appeared on behalf of the banks, argued that Mallya has not been candid with the court regarding his assets, “The gentleman has not told the court about the $45 million he received from Diageo. He is not telling the court that he has money.”

The consortium of seventeen banks have approached the court seeking action against Mallya for not disclosing the full details of his Indian and overseas assets.

On April 26, the Supreme Court had directed Mallya to disclose his assets to the consortium, in a pending dispute regarding the recovery of Rs 9,000 crore owed by him to the banks.

The banks also claimed that disclosures made by Mallya on his Indian and overseas properties were “vague”.

Alleged contemnor (Vijay Mallya) has not disclosed specific details of all his properties – movable, immovable, tangible, intangible, share holdings and any right, title or interest including beneficial interest and those held in fiduciary capacity, in private trusts, public trusts, companies, partnerships, limited liability partnerships, and/or any other entity/ies both in India and abroad on March 31, 2016.
Banks’ Petition Against Vijay Mallya

After Vijay Mallya resigned from the Board of United Spirits Ltd. on February 25, the company informed the Bombay Stock Exchange that Mallya would be paid $70 million (approximately Rs 515 crore), out of which $40 million would be paid upfront. Banks alleged that Mallya’s failure to disclose this information, at the time, is a contempt of the apex court’s order.

“Alleged contemnor (Mallya) made a statement to the press confirming the transaction and further stated that he intends to settle in London,” the petition said.

The Supreme Court will hear the matter after four weeks and decide whether Mallya, who has already been declared a proclaimed offender by an anti-money laundering court in Mumbai, should be booked for contempt.