The Supreme Court on Tuesday has convicted liquor baron Vijay Mallya guilty of contempt of court in a crime for the transferring of $40 million into his children’ accounts thus, violating the court’s order. The Supreme Court has directed Mallya to present before the court on July 10 for the hearing. The conviction has been directed by a bench which comprises of Justice A K Goel and Justice U U Lalit.
State Bank of India (SBI) lead consortium of different banks issued a plea saying that Mallya has transferred $40 million which he received from Diageo, which is a British liquor firm. Mallya transferred money to his children. Currently, Mallya is residing in the United Kingdom. The UK govt. has started the extradition proceedings against Mallya.
Vijay Mallya is wanted in India for loan default and money laundering cases which are worth Rs 9,660 crore. A Team of ED and CBI was sent to London to seek Mallya’s extradition from the country. Mallya went to the UK in March 2016 after the news of his cases came out. Since then he is living there. The amount he owes to the banks is on his now defunct airlines, Kingfisher. Now India making all the efforts to bring him back and make him face the charges.
The Indian government has given the request of Mallya’s extradition to British govt. in February. The news of the conviction by SC came a day after the court said that the loan defaulters should be dealt strongly before the court. The apex court has issued a notice to Mallya on March 8, 2016, after the banks registered a plea for the recovery of Rs 9,000 crore. Before SC could take any action, Mallya went to the UK to escape the trial.
Attorney General Mukul Rohatgi said, “He has taken the court for ride and we are taking action to bring him back. He has not made a honest disclosure regarding $40 million. We don’t know how to get back the money but majesty of court is very important and he must abide by court’s order.” However, the senior counsel advocate of Mallya, C S Vaidyanathan has opposed the court’s action and also said that the government is trying to target Mallya without any reason.
Vaidyanathan said, “There is no violation of court’s order as I was asked to give details of my assets and I provided all the information about assets I was holding on that day. I was not asked to provide all transaction so details about transferring on $40 million was not there. It is shocking that SC is trying to proceed against him. He is being targeted after his business model has failed and he is made poster boy of default when many other people have defaulted in refunding the loan.”