Liquor baron Vijay Mallya would face contempt proceedings in the Supreme Court. The top court today accepted a plea by a consortium of banks in this regard. The apex court also asked Mallya to be present before it on July 10, according to reports.
The consortium of banks had pleaded for contempt proceedings against Mallya in the apex court after the businessman received $40 million from British firm Diageo Plc in February last year but transferred the fund to his children, instead of repaying the loan.
“We have found respondent number 3 (Mallya) guilty of contempt of court on two grounds,” a bench comprising Justices AK Goel and UU Lalit said. On July 10, the apex court would argue on the quantum of punishment in the matter.
Mallya (61), who fled from India last year, owes over Rs 9000 crore to the banks.
At present, Mallya is living in the United Kingdom and facing extradition proceedings. The businessman is wanted in India for alleged loan default and money laundering cases.
Mallya has been declared as a proclaimed offender by India. However, he may challenge his extradition to India from the UK on the ground that the charges against him are politically motivated, according to a PTI report.
On April 18 this year, Mallya was arrested briefly by the Scotland Yard in London on allegations of fraud. The arrest also marked the beginning of the official extradition process in the British courts to bring Mallya to India. However, Mallya was released after he provided a 650,000m pound-bail bond and assured the court that he would abide by all conditions of the extradition proceedings.
Mallya had fled India on March 2, 2016. His now defunct Kingfisher Airlines allegedly owes over Rs 9000 crore to several banks. In January this year, a court allowed the group of banks to start the process of loan recovery.
India had submitted a formal extradition request for Mallya as per the Extradition Treaty between India and the UK through a note verbale on February 8.
(With PTI inputs)