A day after Supreme court held that loan defaulters must be dealt with iron hands and it convicted industrialist Vijay Mallya for Contempt of court. A bench of Justice A K Goel and UU Lalit held him guilty and directed him to personally appear in front of it on 10 July when court decide quantum of punishment to be awarded to him. The court passed the order On a contempt plea filed by banks which is led by SBI which sought to take action against Mallya for diverting $40 million to his children accounts in foreign bank according to court order.
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The apex court had started proceeding against Vijay Mallya and had issued notice on 8 March 2016. For recovery of 9000 crore that Mallya and his companies owed from banks. He however managed to flee the country before supreme court took up case against him. Attorney General had told bench of Justice that Mallya had breached the Supreme court order and his refusal to bring back the money and should be directed to appear before the court.
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Attorney General Mukul Rohatgi said, ” He has taken court for ride and taking action to bring him back and has not made honest disclosure of $40 million, don’t know how to get back the money.” The court raised question on how its order, if it was passed against Vijay Mallya and would be executed as he was living in UK and asked Attorney General to give modalities under which all of court’s order would implemented.
After taking instructions from government Rohatgi had informed court that the centre was trying to deport him and court’s order would boost the process to bring him back for proceeding against him. Mallya’s senior advocate C S vaidyanathan opposed for any strong action against him and alleged that Mallya was unnecessarily targeted by government despite the properties worth more than Rs 1000 crore . He asked that he was not in state to refund the money.
He had said,” There is no violation against court’s order as I was asked to give details about my assets and I provide all details. I was not asked to give all transactions details so details about transferring $40 million was not present. Mallya is being targeted after his business model failed and become a poster boy of default when many other people defaulted on refunding the loan. “