Banks seek contempt action against Vijay Mallya in SC

The consortium of banks, led by the State Bank of India, on Thursday moved the Supreme Court with a fresh plea, seeking initiation of contempt proceedings against Vijay Mallya, who is in the UK, alleging that he has not given the complete details of his assets as directed.

A Bench, comprising Justices Kurian Joseph and RF Nariman, agreed to hear the fresh interim application of banks on July 18, after Attorney General Mukul Rohatgi mentioned it for urgent hearing. Rohatgi claimed that Mallya had provided wrong details of his assets in a sealed cover to the Apex Court. He further said that a lot of information had also been concealed, including a cash transaction to the tune of Rs 2500 crore, which amounted to contempt of court. 

Earlier, the court had sought the details of assets from Mallya in a sealed cover. Recently, the consortium of banks had alleged that Mallya was not cooperating in the investigation against him and was averse to disclosing his foreign assets.

In a rejoinder affidavit to Mallya’s reply, the banks had said that the disclosure of overseas assets by him and his family was significant for recovering the dues.

Rohatgi had earlier said that the beleagured businessman had also not agreed to deposit “substantial amount” as part of Rs 9,400-crore loan due on him to establish his bonafide”.

Mallya had said that the banks had no right over information regarding his overseas movable and immovable assets as he was an NRI since 1988. He had also claimed that as an NRI, he was not obliged to disclose his overseas assets, and added that his three children and wife, all US citizens, also need not disclose their assets. “Overseas assets were not considered while granting loans,” he had said in a statement.

The court had on April 7 directed Mallya to disclose by April 21 the total assets owned by him and his family in India and abroad.