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Vijay Mallya did not deposit money with the court, the Supreme Court was told

20220925 121810 1
20220925 121810 1

Vijay Mallya did not deposit money with the court, the Supreme Court was told

Vijay Mallya is accused in a case of defaulting on a bank loan of over Rs 9000 crore. (a file)

New Delhi:

A debt recovery officer at the Bengaluru Debt Recovery Court told the High Court that neither Vijay Mallya, who was sentenced to four months in prison for contempt of court, nor any other beneficiary of the money transfer case, had deposited any amount in court until August 18.

On July 11, the Supreme Court sentenced Vijay Mallya to four months imprisonment for contempt of court and directed him and the beneficiaries under the said transactions relating to US$40 million to deposit the amount received with interest at the rate of 8 per cent per annum with the concerned recovery officer within four weeks.

The court also asked the center to secure the presence of the fugitive businessman, who has been in the UK since 2016, to undergo imprisonment.

A judicial panel comprising Chief Justice Uday Umesh Lalit and Judge S Ravindra Bhatt will consider the petition by a consortium of banks led by the State Bank of India for further action on Monday.

“A letter dated August 18, 2022, received from Recovery Officer-2, DRT-2, Bengaluru has also been submitted stating that the Recovery Officer has not received any amount either from the Rampant (Vijay Mallya) or from the beneficiaries, so far the Bureau’s report on The case filed on the Supreme Court’s website.

The Supreme Court is also likely to consider letters submitted by the Home Office regarding further developments in the case on Monday.

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Earlier, while awarding the verdict to Vijay Mallya, 66, the court said he had never shown any remorse nor offered any apology for his behavior and appropriate punishment should be imposed to preserve the greatness of the law.

It also imposed a fine of Rs 2,000 on Vijay Mallya, who was found guilty of contempt of court by the Supreme Court on May 9, 2017, for diverting US$40 million to his children in violation of court orders.

He had said in case the amount is not deposited, the concerned recovery officer has the right to take appropriate action to recover the funds and the Government of India and all concerned agencies should provide full assistance and cooperation.

“It should be open to taking such appropriate steps, including the appointment of the forensic auditor(s),” the court said.

He had said if the fine amount of Rs 2,000 is not deposited within the stipulated time, Vijay Mallya will be subject to an additional penalty of two months.

The court said that the transactions referred to in the judgment and order dated May 9, 2017, according to which the sum of US$40 million was disbursed to the beneficiaries, are considered “void and invalid.”

In its judgment of May 9, 2017, the bench noted that the Supreme Court had found that the suit taken by Vijay Mallya to disburse the US$40 million was against the “text and substance” of orders issued by the Karnataka High Court and that the contemporary was guilty of contempt.

Vijay Mallya is accused in a case of defaulting on a bank loan of over Rs 9,000 crore related to the defunct Kingfisher Airlines.

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In 2020, the Supreme Court rejected Vijay Mallya’s petition seeking review of the May 2017 ruling.

Vijay Mallya has been living in the UK since March 2016. He was released on bail under an extradition warrant executed by Scotland Yard on 18 April 2017.

A consortium of lending banks led by the State Bank of India has shifted the Supreme Court alleging that Vijay Mallya did not follow court orders on the repayment of the loan over Rs 9,000 crore.

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

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