Vijay Mallya should make fresh disclosure of overseas properties: Supreme Court
The Supreme Court granted Vijay Mallya three weeks’ time to make the disclosure
New Delhi: The Supreme Court on Tuesday directed UB Group chairman Vijay Mallya to make a fresh disclosure of his overseas properties with complete details, giving him three weeks to do so.
“Prima facie, we do not believe that Mallya has made a full disclosure of his assets,” the court said.
A bench comprising justices Kurian Joseph and Rohinton F. Nariman asked Mallya to disclose details of $40 million he received in February as part of his exit from United Spirits Ltd (USL).
Mallya stepped down as non-executive chairman of USL, controlled by Diageo Plc., in February, ending all association with the company in return for a payment of $75 million to be made over five years.
According to C. Vaidyanathan, a senior advocate appearing on behalf of Mallya, the court’s order has been complied with. “The $40 million cash in hand was already spent and did not exist on the date of disclosure,” he told the court.
A consortium of banks led by State Bank of India had moved a contempt petition against the former liquor baron for not making a full disclosure of assets.
“Every disclosure made by Mallya is with an intention to deceive the banks,” the government’s top law officer, attorney general Mukul Rohatgi, appearing for the banks, told the court.
The banking consortium had moved the debt recovery tribunal against Kingfisher Airlines Ltd in 2013 for defaulting on loans.
The defunct Kingfisher Airlines owes the consortium of 17 banks a combined Rs.9,091 crore. The banks have informed the court that they were willing to renegotiate a settlement after spurning an initial offer of negotiations.
The case will be heard next on 24 November.