Vijay Mallya Contempt Case: Supreme Court Reserves Order On Sentence

The Supreme Court of India on Thursday reserved its order on the quantum of punishment to be imposed on Vijay Mallya for contempt of court.

In May 2017, the businessman was found guilty of contempt for transferring $40 million to his children in violation of the apex court's order.

At the time, Mallya was asked to appear and present his arguments on the quantum of punishment. Subsequently, he was allowed to make his arguments through his lawyers. Mallya failed to do either.

On Thursday, the apex court took up the proceedings on sentencing.

The central government argued for maximum sentence against Mallya for contempt of court. Advocate Rajat Nair told the court that Mallya had wilfully and intentionally abandoned the proceedings to obstruct justice.

Mallya’s conduct had aggravated the contempt, and maximum punishment should be imposed upon him, Nair said while arguing for the government.

The 2017 contempt order came on a plea by a consortium of banks led by the State Bank of India. Mallya had allegedly transferred $40 million received from the British firm Diageo Plc to his son Siddharth Mallya and daughters Leanna Mallya and Tanya Mallya in "flagrant violation" of judicial orders passed by the Karnataka High Court, the banks told the court.

The high court had barred Mallya from transferring or alienating any movable and immovable assets to any person.

The apex court proceedings, however, raise the question of implementation of the sentence, if it is passed against Mallya since he is currently out of India.

It is not an abnormal thing and has happened before, "involving people who are much smaller than Mallya", pointed out Senior Advocate Sanjoy Ghose.

The top court bench presided by Justice UU Lalit on Thursday reserved the order on sentencing after hearing Amicus Curiae Jaideep Gupta and the central government.

The date of pronouncing the order is not known yet.