4 Months of imprisonment imposed on Vijay Mallya for contempt of court
The Supreme Court on Monday punished former liquor baron Vijay Mallaya with four months of imprisonment. They had also imposed a fine of Rs 2,000 fine because he was found guilty of contempt of court in a 2017 case. He was convicted of contempt in 2017 over a bank loan default case of over transferring Rs 9,000 crore involving his defunct Kingfisher Airlines to his children. The SC asked to deposit $40 million with 8 percent interest within four weeks to the Supreme Court legal services authority. If he fails to do so he will be sentenced to two months along with the attachment of properties.
The court said, “If this is not deposited, the recovery officer can take appropriate actions for recovery of the said amount and the government of India and all agencies should assist in that process.”
UU Lalit, S Ravindra Bhat, and PS Narasimha were included in a bench of Justice that passed the order. A plea, led by the State Bank of India, by a consortium of banks looked for the contempt action and directed the former liquor baron to deposit $40 million that he received through Diageo. The banks had alleged that Vijay Mallaya had kept the facts hidden and had also transferred the money to his daughters Tanya Mallya and Leanna Mallya and his son Siddharth Mallya violating the orders passed by the Karnataka High Court.
The hearing of the Karnataka High Court had taken place in the absence of Vijay Mallya because he fled to the United Kingdom. At various times the hearing was deferred to give time to Mallya to be present before the court but then after his absence for a long time they decided to proceed with the hearing in his absence.