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Supreme Court orders Vijay Mallya to appear before it on July 10

The former Kingfisher boss owes over Rs 9000 crore to the banks.

Supreme Court orders Vijay Mallya  to appear before it on July 10

The Supreme Court on Tuesday held beleaguered liquor baron Vijay Mallya guilty of contempt on plea by consortium of banks and ordered him to appear before it on July 10.The court passed the orders after a consortium of banks moved the contempt petition against Mallya.

The former Kingfisher boss owes over Rs 9000 crore to the banks. The banks claimed that Mallya transferred the $40 million settlement he received from Diageo to his children's bank accounts instead of clearing his debts.

The court will decide on the quantum of punishment after hearing him.

The banks moved the top court after the businessman got $40 million from the British firm Diageo Plc in February 2016 and transferred the money to his children instead of repaying the loan.

The transfer violated orders passed by the debt recovery tribunal and the Karnataka high court, attorney general Mukul Rohtagi told the court.

In a parallel case, Mallya was earlier arrested and released on bail after law enforcement authorities sought his extradition from the United Kingdom. He is wanted in multiple cases such as loan default, cheque dishonour and diversion of funds. The beleaguered businessman was arrested by the Scotland Yard and was released immediately.

Mallya, who is facing extradition proceedings, has denied the charges, accusing the government, banks and media of a witch-hunt.The money is owed by his now-defunct Kingfisher Airlines that was grounded in 2012.After three failed auctions, the banks in April managed to sell his iconic Kingfisher villa in Goa to actor and beer baron Sachiin Joshi for Rs 73.01 crore.

The villa was among the assets Mallya pledged to his lenders, who took possession of the property in May 2016. Beachfront property was owned by United Breweries Holdings, the parent of the airline.

MPWebdesk

MPWebdesk

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