SC seeks reply from Vijay Mallya within four weeks

In a huge relief to bankers, the Supreme Court on Monday sought reply from Vijay Mallya within four weeks. A consortium of banks, led by the State Bank of India, on July 15 had moved the Supreme Court, alleging that Mallya has not given complete details of his assets as directed, hence seeking initiation of contempt proceedings against him.

The bankers told the apex court that Mallya had failed to disclose $45-million payment by Diageo Plc. 

On April 7, the Supreme Court had directed the beleaguered businessman to disclose by April 21 total assets owned by him and his family in India and abroad. It had also asked Mallya to deposit a ‘substantial amount’ with it to “prove his bonafide” that he was “serious” about meaningful negotiations and settlement.

Mallya owes over Rs 9,000 crore to around 17 banks.

Meanwhile, the Supreme Court has also given more time to the Debt Recovery Tribunal (DRT) to complete the hearing in Mallya loan default case.

In recent times, United Spirits Limited (USL), owned by British liquor major Diageo, has given evidence to investigation agencies of Rs 1,225-crore fund diversion from the company under Mallya. On his part, Mallya has denied these charges. Other than Mallya, Enforcement Directorate (ED) is also investigating USL officials for funds diversion from India to tax havens abroad.

Currently, Mallya is residing in London. He has been evading ED summons, which is investigating fund diversion by Kingfisher Airlines.