Resuming after a 50-day summer break, the Supreme Court on Monday imposed four months imprisonment on fugitive businessman Vijay Mallya for contempt of court. A fine of Rs 2,000 was also imposed on him.
The apex court directed him to deposit 40 million USD with interest within four weeks and asked the authorities to take attachment proceedings in case of his default.
The court said, ” The transaction, where Mallya transferred 40 million USD from the sale of the United Breweries property to his children, was void. All money transferred by him is to be returned to the loan recovery officer with 8 per cent interest.”
BANK LOAN DEFAULT CASE
The liquor baron is accused in a bank loan default case of over Rs 9,000 crore involving his Kingfisher Airlines.
A plea was filed by a consortium of banks led by the State Bank of India (SBI) before the Supreme Court seeking contempt action against Mallya, alleging that he had transferred USD 40 million to his children, thereby violating court orders.
The apex court thereafter found him guilty of contempt in 2017. The court had, in August 2020, also dismissed his plea seeking a review of the 2017 verdict and directed him to appear before it.
Earlier on March 10, the Supreme Court reserved its order after hearing the case in absentia due to Mallya’s failure to appear in court.