The Supreme Court on Monday has sentenced fugitive industrialist Vijay Mallya to a four-month jail term with a fine, in a contempt of court case of 2017.
The court directed Mallya and his beneficiaries (family) to repay $40 million — which, in violation of a high court order, he transferred to his kin — with interest of 8 per cent within four weeks, or else recovery officers will take action and recover the amount.
A fine of Rs 2,000 should also be deposited within the deadline with the apex court’s legal services authority, failing which the jail term will be extended by two months, the court said.
Mallya was convicted for disobeying the SC court order on full disclosure of assets and for breaching a Karnataka High Court (HC) order refraining him from alienating assets. He allegedly transferred the $40 million to his children, which was against the HC directive.
The SC orders imply if the amount is not deposited within the stipulated time, Mallya’s properties could be attached by the authorities concerned.
The apex court Bench, led by Justice Uday Umesh Lalit, Justice S Ravindra Bhat, and Justice PS Narasimha, said: “Mallya appeared to show no remorse…an adequate sentence must be imposed on him so as to uphold the majesty of law and directions should be issued to ensure that the amount is available for execution of the orders.”
The move, according to Indian authorities, would expedite the extradition proceedings against Mallya in an alleged Rs 9,000-crore money-laundering case related to loans to his now-defunct Kingfisher Airlines.
The court also held the fund transfer to his kin was “void and inoperative”. It had reserved orders on March 10.
“The SC verdict will strengthen the Indian authorities’ extradition case against Mallya. This is the first time Mallya has been sentenced by the top court. This will aid the process and would see to it that it reaches its finality soon,” said public prosecutor Hiten Venegavkar.
The SC order, however, will be executed only when he is deported to India, where he faces other charges.
“The process of bringing back a convicted person can be complex, arduous, and time-consuming,” said Lomesh Kiran Nidumuri, partner (disputes), Cyril Amarchand Mangaldas.
A State Bank of India-led consortium had sought contempt action and a direction to Mallya to deposit $40 million received from offshore firm Diageo.
The banks had alleged Mallya had concealed facts and transferred the amount to his son Siddharth Mallya and daughters Leanna Mallya and Tanya Mallya in a “flagrant violation” of the orders passed by the Karnataka HC.
Mallya is currently on bail in the UK while a confidential legal process has been completed. He has been contesting the UK government’s 2019 order of his extradition to India in British courts. He is learnt to be relying on an application seeking political asylum in the UK.
The apex court had earlier deferred the hearing to allow Mallya to appear but had decided to proceed in his absence because of his refusal to appear.
