Vijay Mallya failed to deposit any money in court, Supreme Court says

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Vijay Mallya is charged in a case of bank loan default of over Rs 9,000 crore. (Case)

New Delhi:

A debt collection officer at a debt collection court in Bangalore told the Supreme Court that neither Vijay Mallya, who was sentenced to four months in prison for contempt of court, nor any other beneficiary of the transfer case of funds, did not file any amount with the court until August 18.

On July 11, the high court sentenced Vijay Mallya to four months in prison for contempt of court and ordered him and the beneficiaries of the said transactions involving 40 million dollars to deposit the amount received as well as interest in the rate of 8 percent. cent per year with the relevant collection agent within four weeks.

The bench had also asked the Center to ensure the presence of the fugitive businessman, who has been in the United Kingdom (UK) since 2016, to serve a prison sentence.

A bench consisting of Chief Justice Uday Umesh Lalit and Justice S Ravindra Bhat will consider the plea, filed by a consortium of banks led by the State Bank of India, for retrial on Monday.

“It is further submitted that a letter dated August 18, 2022, received from Collections Agent-2, DRT-2, Bengaluru, stating that the Collections Agent has not received any monies from Contemnor (Vijay Mallya) nor of the beneficiaries, till date,” said the case office report uploaded to the Supreme Court’s website.

The high court will also likely consider letters submitted by the Home Office regarding further developments in the case on Monday.

Earlier, in sentencing 66-year-old Vijay Mallya, the bench said he had never shown remorse or apologized for his conduct and that an adequate sentence should be meted out for maintain the majesty of the law.

He had also fined Rs 2,000 on Vijay Mallya, who was found in contempt of court by the highest court on May 9, 2017, for transferring $40 million to his children in violation of court orders. .

He had stated that in case the amount is not deposited, the concerned debt collector shall have the right to initiate appropriate proceedings for the recovery of the money, and the Government of India and all concerned agencies shall provide an assistance and full cooperation.

“He must be open to taking appropriate action, including appointing one or more forensic auditors,” the court had said.

He said that if the amount of the fine of Rs 2,000 is not deposited within the time limit, Vijay Mallya will suffer a new sentence of two months.

The transactions covered by the judgment and the order of May 9, 2017 under which the amount of $40 million was paid to the beneficiaries are deemed “null and ineffective”, the court said.

The bench noted that in its May 9, 2017 verdict, the higher court found that Vijay Mallya’s action in disbursing the $40 million was contrary to the “text and content” of the orders issued. by the High Court of Karnataka and that the contemptuous was in contempt.

Vijay Mallya is charged in a bank loan default of over Rs 9,000 crore involving his defunct Kingfisher Airlines.

The Supreme Court had rejected in 2020 the plea of ​​Vijay Mallya asking for a review of the verdict of May 2017.

Vijay Mallya has lived in the UK since March 2016. He is free on bail on an extradition warrant executed by Scotland Yard on April 18, 2017.

A consortium of lending banks led by the State Bank of India had moved the Supreme Court alleging that Vijay Mallya was not following court orders on repayment of the loan which then exceeded Rs 9,000 crore.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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