Synopsis: Vijay Mallya had filed a petition seeking review of the order issued by the top court on May 9, 2017, in which he was found guilty of contempt of court for transferring the USD 40 million to his children.
On Monday, the Supreme Court rejected a petition for review filed by former liquor baron Vijay Mallya, challenging the order that holds him guilty of contempt.
A bench of Justices UU Lalit and Ashok Bhushan said that it find no merits in the review petition and, therefore, dismissed the same.
Mallya owes more than Rs 9,000 crore in the form of unpaid loans to SBI-led consortium of banks. The SBI had filed a petition for contempt against Mallya for failure to reveal the bank accounts into which USD 40 million was paid. Moreover, the Court found him guilty of siphoning off the balance which had to be deposited with the banks otherwise.
Mallya had filed a review to consider an affidavit that claimed the amount was not part of his assets. He also argued that if the Supreme Court finds him responsible, he will lose his valuable right to appeal.
The top court had sought an clarification from its registry officials about the excessive delay in mentioning the petition for consideration as the case came up for hearing in June, 2020.
When the matter was taken up on August 6, it was adjourned again as it was unable to find any crucial records relating to the case. The case was finally heard on the 27th of August and reserved for judgement.
Mallya was sentenced on 9 May 2017 for contempt of court for not truthfully reporting his properties and transferring money to his family violating court order against her.
Mallya, who is an accused in a bank loan default case involving the now defunct Kingfisher Airlines worth more than Rs. 9,000 crore, is reportedly in the UK.
The apex court’s 2017 order had come on a plea by a consortium of banks led by the State Bank of India (SBI), which said Mallya had allegedly transferred $40 million received from British firm Diageo, to his children in “flagrant violation” of various judicial orders.
It was dealing with pleas of lending banks demanding contempt action and a direction to Mallya to deposit $40 million received with the banks respectively from offshore firm Diageo.
The banks then alleged Mallya had concealed the truth and transferred the money to his son Siddharth and daughters Leanna and Tanya in “flagrant violation” of the Karnataka High Court’s orders.