Monday, February 20, 2017
facebook

google plus
Nation

Posted at: Jan 11, 2017, 7:16 PM; last updated: Jan 11, 2017, 7:16 PM (IST)

Instead of clearing loan, Mallya diverted $40 million to family trusts, banks tell SC

SC seeks liquor baron’s response
Instead of clearing loan, Mallya diverted $40 million to family trusts, banks tell SC
Vijay Mallya. PTI file

R Sedhuraman

Legal Correspondent

New Delhi, January 11

The Supreme Court on Wednesday sought liquor baron Vijay Mallya’s response within three weeks to the charge that he misappropriated 40 million dollars by giving it to his family trusts instead of repaying bank loans amounting to Rs 9,000 crore.

A Bench comprising Justices Kurian Joseph and AM Khanwilkar posted the next hearing for February 2 as the consortium of 17 banks pleaded that Mallya had received 40 million dollars from Diageo, a liquor firm based in Britain, on February 25, 2016, by selling one of his companies.

The defaulter, who has since fled to Britain, transferred the funds to trusts run by his children in violation of judicial orders.

The Bench was hearing the plea of the banks led by the State Bank of India (SBI) to take action against Mallya for committing contempt of court.

Earlier, the defaulter’s senior counsel CS Vaidyanathan had pleaded that his client did not mention the receipt of 40 million dollars in his response to the court notice on the contempt petition by the banks as the Bench had asked him to disclose only the assets and liabilities, not revenue and expenditure.

Unconvinced, the Bench had said Mallya was not getting the spirit of the court order. Since he was facing charges of contempt of court he should have come clean, disclosing the details of assets in full, instead of finding excuses to withhold information.

Arguing for the banks, Attorney General Mukul Rohatgi had pleaded that Mallya was trying to deceive the court and the banks by playing tricks on the Bench.

The banks had given loans to his companies—the now defunct Kingfisher Airlines, United Breweries and Kingfisher Finvest (India) Ltd.

COMMENTS

All readers are invited to post comments responsibly. Any messages with foul language or inciting hatred will be deleted. Comments with all capital letters will also be deleted. Readers are encouraged to flag the comments they feel are inappropriate.
The views expressed in the Comments section are of the individuals writing the post. The Tribune does not endorse or support the views in these posts in any manner.
Share On