SC orders Mallya to disclose overseas assets in four weeks

All the banks had was a bare statement from Mr. Mallya that the net estimated current value of his overseas assets and that of his wife and children aggregate to $114.571 million or around Rs.780 crore.

The Supreme Court on Tuesday gave businessman Vijay Mallya four weeks to disclose complete details and particulars of his overseas assets till date.

A 13-bank consortium led by the State Bank of India had returned to a Supreme Court Bench of Justices Kurian Joseph and Rohinton F. Nariman after their efforts to recover Rs. 6,000 crore from Mr. Mallya ended up in despair. Reason: the banks could not even locate his assets.

All the banks had was a bare statement from Mr. Mallya that the net estimated current value of his overseas assets and that of his wife and children aggregate to $114.571 million or around Rs.780 crore.

They alleged that Mr. Mallya did not co-operate in the recovery process despite an order from the Supreme Court on April 7, 2016, directing him to do so.

The banks, represented by Attorney General Mukul Rohatgi and advocate Robin Ratnakar David, said a disclosure statement of assets submitted by Mr. Mallya to the Supreme Court in April does not contain a “whisper” about the details, forms and locations of his assets.

Noting that it “prima facie” felt that Mr. Mallya has disclosed his assets, the Bench ordered him to disclose the entire particulars of his foreign assets – their worth, their locations and the forms in which they are - in the next four weeks.

The court scheduled a hearing for November 24.

The Bench also sought details from Mr. Mallya about a payment of $ 40 million out of a total $ 75 million (Rs. 515 crore) he allegedly received from British liquor major Diageo Plc following his resignation as Chairman of United Spirits Limited in February 2016.

The banks had submitted that Diageo itself had on February 28 apprised the Debt Recovery Tribunal about the payment on February 25. They submitted that Diageo's memo before the tribunal traces the payment to an account maintained by Mr. Mallya with Edmond De Rothschild (Suisse) SA in Geneva.

However, the disclosure statement filed by Mr. Mallya of assets in his possession as on March 31 had not reflect this transaction of $40 million.

"This 40 million must find a place in your accounts. This is 40 million gone in just 40 days," the Bench observed.

The banks urged that this action of “deliberate” concealment went against the very letter and spirit of the court's direction on April 7 to Mr. Mallya to disclose all his assets.

Mr. Mallya had accused the banks of trying to lure him back with appeals of a “negotiated settlement” when in fact they wanted to send him “straight to Tihar Jail”. He had called the wrecked Kingfisher Airlines a “bonafide business failure”.