SC convicts Mallya for contempt, asks him to appear before it on July 10
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AmitAnand Choudhary
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New Delhi
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The Supreme Court on Tuesday
held controversial liquor baron Vijay Mallya guilty of contempt of
court for not honestly disclosing all his assets and diverting his $40
million to overseas accounts of his family members in violation of the
court's order.
A bench of Justices A K Goel and U U Lalit directed
Mallya, who left for the UK to dodge criminal proceedings against him
for not refunding loans worth over 9,000 crore, to personally appear
before the court on July 10.
A bench of Justices A K Goel and U U Lalit directed Mallya, who left for the UK to dodge criminal proceedings against him for not refunding loans worth over Rs 9,000 crore, to personally appear before the court on July 10, when it would decide the quantum of punishment.Mallya is not likely to abide by the order to appear before it as he would be nabbed by the government agencies the moment he lands in the country , but the apex court's verdict convicting him for contempt would strengthen India's case in a UK court to get him extradited. The order against Mallya came a day after the court held that loan defaulters deserved to be dealt with iron hand and it can serve to reinforce the message.
The court agreed with the contention of consortium of 17 banks led by SBI that the flamboyant businessman did not make a complete disclosure of his assets to the Supreme Court.The banks which have lent money to Mallya said he intentionally kept the court in dark about $40 million he received in February last year from British liquor major Diageo for stepping down as chairman and MD of United Spirits Ltd.
The bench said it had found Mallya guilty on both counts and dismissed his plea that he did not violate the court's order on disclosure of assets. SBI has the highest exposure of `1,600 crore to the beleaguered promoter of now grounded Kingfisher Airlines. Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (``800 crore each), Bank `650 crore), Bank of of India (` Baroda (` `550 crore) and Central Bank of India (` `410 crore).
A bench of Justices A K Goel and U U Lalit directed Mallya, who left for the UK to dodge criminal proceedings against him for not refunding loans worth over Rs 9,000 crore, to personally appear before the court on July 10, when it would decide the quantum of punishment.Mallya is not likely to abide by the order to appear before it as he would be nabbed by the government agencies the moment he lands in the country , but the apex court's verdict convicting him for contempt would strengthen India's case in a UK court to get him extradited. The order against Mallya came a day after the court held that loan defaulters deserved to be dealt with iron hand and it can serve to reinforce the message.
The court agreed with the contention of consortium of 17 banks led by SBI that the flamboyant businessman did not make a complete disclosure of his assets to the Supreme Court.The banks which have lent money to Mallya said he intentionally kept the court in dark about $40 million he received in February last year from British liquor major Diageo for stepping down as chairman and MD of United Spirits Ltd.
The bench said it had found Mallya guilty on both counts and dismissed his plea that he did not violate the court's order on disclosure of assets. SBI has the highest exposure of `1,600 crore to the beleaguered promoter of now grounded Kingfisher Airlines. Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (``800 crore each), Bank `650 crore), Bank of of India (` Baroda (` `550 crore) and Central Bank of India (` `410 crore).
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