The Supreme Court on Thursday put forth searching questions to businessman Vijay Mallya on the disclosure of his assets to the court.
A bench, comprising Justices A.K. Goel and U.U. Lalit, asked Mr. Mallya if he was truthful after a consortium of banks led by the SBI alleged that $40 million was transferred by him to his three children in complete violation of the Karnataka High Court order.
Moreover, the fact that $40 million was received by Mr. Mallya from the United Kingdom-based Diageo PLC was not disclosed before the court here, Attorney General Mukul Rohatgi, appearing for the banks, alleged.
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Taking note of the allegation, the bench asked counsel for Mr. Mallya to respond to Mr. Rohatgi’s query whether “he truthfully disclosed his assets or not”.
It also wanted to know as to whether by transferring $40 million to his children, he violated the Karnataka High Court order in this regard or not.
The High Court had restrained him from transferring or alienating any movable and immovable assets to any third party.
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On March 3, the banks submitted that the $40 million transfer was in “flagrant violation” of various judicial orders, including those passed by the Debt Recovery Tribunal and the High Court. The banks prayed that orders be passed to “secure the deposit of the said amount of $40 million before this court or the DRT forthwith, pending disposal of the further recovery proceedings.”
On January 11, the bench granted three weeks to Mr. Mallya to file an affidavit in response to the banks' plea.
In October last, the court rapped Mr. Mallya for not making full disclosure of his overseas properties and asked him to do so within a month. The bench also pulled up Mr. Mallya for not giving details of the $40 million, saying it was of the “prima facie view” that proper disclosure as per its earlier order was not made.
The consortium had alleged that the $40 million, which was now stashed away in Mr. Mallya’s Swiss bank account, belonged to it. It said that the money should be brought back to India or the Supreme Court.
On August 29 last, the banks told the apex court that Mr. Mallya had deliberately not made full disclosure of his assets, including the $ 40 million he received on February 25, 2016. It asked Mr. 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.