Supreme Court asks Mallya whether he truthfully disclosed assets

A bench comprising Justices A K Goel and U U Lalit asked Mallya if he had been truthful after a consortium of banks led by the SBI alleged that USD 40 million was transferred by Mallya to his three children in complete violation of the Karnataka High Court order.

Moreover, the fact that USD 40 million was received by Mallya from a United Kingdom-based company Diageo PLC was not disclosed before the court here, Attorney General Mukul Rohatgi, appearing for the banks, alleged.

Taking note of the allegation, the bench asked the counsel for Mallya to respond to the AG's query whether "he truthfully disclosed his assets or not".

It also wanted to know as to whether by transferring USD 40 million to his children, he violated the Karnataka High Court order in this regard or not.

The Karnataka High Court had restrained Mallya from transferring or alienating any movable and immovable assets to any third party. The bench would resume hearing at 2 PM. 

On March 3, the banks had submitted that USD 40 million which Mallya had allegedly received from British firm Diageo in February last year was transferred to his children in "flagrant violation" of various judicial orders, including those passed by the Debt Recovery Tribunal and the Karnataka High Court.

The banks prayed that orders be passed to "secure the deposit of the said amount of USD 40 million before this court or the DRT forthwith, pending disposal of the further recovery proceedings."

The bench on January 11 had granted three weeks to Mallya to file an affidavit in response to the plea of banks.

In October last year, the court had rapped Mallya for not making full disclosure of his overseas properties and had asked him to do so within a month.

The bench had also pulled up Mallya for not giving details of the USD 40 million, which he had allegedly received from the British firm in February last year, saying it was of the "prima facie view" that proper disclosure as per its earlier order was not made.

The consortium of banks including SBI had alleged that the USD 40 million belonged to the consortium of banks which was now stashed in Mallya's Swiss bank account and said it should be brought back to India or the Supreme Court.

The banks had on August 29 last year told the apex court that Mallya had deliberately not made full disclosure of his assets including the USD 40 million he received on February 25, 2016 from Diageo.

It had asked Mallya, who owes over Rs 9,000 crore to around 17 banks, to deposit a "substantial amount" with it to "prove his bonafide" that he was "serious" about meaningful negotiations and settlement. 

The Centre has written to the UK Government for deportation of liquor baron and businessman, Vijay Mallya, Attorney General of India,  Mukul Rohatgi, said in response to a query by the Supreme Court. 

The Apex Court bench, headed by Justice Adarsh Kumar Goel, was hearing the plea filed by State Bank of India (SBI) led consortium of banks seeking recovery of its dues to the tune of more than Rs 8,000 crore and initiation of contempt proceedings against the liquor baron. 

During the first half of the arguments, the Apex Court enquired from the AG about bringing Mr Mallya back to India.  

The bench also asked whether Mr Mallya had truthfully disclosed his assets to the Supreme Court.

The Apex Court also inquired whether Mr Mallya had violated the Karnataka High Court order which had restrained him from alienating or transferring his assets to his family members without the approval of the court.

The SBI led consortium of banks had knocked the doors of the Apex Court seeking a direction from it to Mr Mallya to bring 40 million USD to this court before he is heard.

Mr Mallya had received 40 million USD from UK-based company Diageo in lieu of sailing his shares in United Breweries group.