Supreme Court sentences fugitive Vijay Mallya to 4 months in jail
The Apex court bench led by Justice UU Lalit directs Mallya to deposit back $40 million with interest within four weeks or his property would be attached.
FollowSupreme Court on Monday sentenced fugitive businessman Vijay Mallya to four months imprisonment for contempt of court in 2017 for withholding information from the court.
The Apex court bench led by Justice UU Lalit directed Mallya to deposit back $40 million with interest within four weeks or his property would be attached. The Supreme Court had in 2017 held Mallya guilty of contempt of court for withholding information from the court about transferring $40 million to his children in violation of the court's order.
The bench, also comprising of S Ravindra Bhat and PS Narasimha, had on March 10 reserved its order in the case. The bench had then observed that proceedings against Mallya had hit a 'dead wall'
Mallya, who has been in the United Kingdom since March 2016, is currently on bail on an extradition warrant executed by Scotland Yard on April 18, 2017.
The case against Mallya involves a consortium of Indian banks led by the State Bank of India seeking the repayment of an estimated judgment debt of around GBP 1.05 billion (Rs 9,992 crore) owed by the now-defunct Kingfisher Airlines.
Also Read:Â Twitter explodes with memes after Vijay Mallya shares photo with 'good friend' Gayle
The consortium of banks includes State Bank of India, Bank of Baroda, Corporation Bank, Punjab & Sind Bank, Punjab National Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, State Bank of Mysore, UCO Bank, United Bank of India, Jammu & Kashmir Bank and JM Financial Asset Reconstruction Co Pvt Ltd.Â
The banks told the Supreme Court that Mallya allegedly concealed facts and diverted the money to his daughters Leanna and Tanya Mallya and son Siddharth Mallya in 'flagrant violation' of the orders passed by the Karnataka High Court. Mallya was then directed to be present before the Court for the hearing on his sentencing. However, the liquor baron had already fled the country by then and hence failed to appear for the hearings. The Court eventually decided to conduct hearings in the case without Mallya.
On Monday, the bench directed that the contemnor (Mallya) and beneficiaries of the transactions, referred to in its May 2017 verdict, will have to deposit the amount received by them with 8% interest per annum within four weeks with the recovery officer concerned.
If the amounts are not deposited, the recovery officer will be entitled to initiate necessary proceedings for recovery of the said amount and the Government of India and all agencies concerned shall extend assistance, it said.
The bench directed Mallya to deposit a fine of Rs 2,000 in the registry of the Apex court within four weeks. In case, the amount of fine is not deposited within the time stipulated, Mallya will have to undergo two more months of jail term.
Also Read:Â Rs 18,000 crore recovered from Vijay Mallya, Mehul Choksi, Nirav Modi
