SC tosses out Mallya plea in forex case

The apex court also imposed Rs 10 lakh as costs on Mallya in the case

The Supreme Court on Monday dismissed liquor baron Vijay Mallya’s plea for quashing criminal proceedings against him in a case pertaining to alleged violation of foreign-exchange rules.

A bench headed by judge J S Khehar also imposed Rs 10 lakh as costs on Mallya in the case.

Earlier, the apex court had issued a notice to the enforcement directorate (ED) on the United Breweries (UB) group chief's plea against the Delhi high court order turning down his appeal for quashing criminal proceedings in a lower court for alleged "wilful" disobedience of summons issued to him by the ED.

The ED had alleged that Mallya violated the provisions of Foreign Exchange Regulation Act (Fera) in arranging funds to advertise his liquor products abroad over a decade ago.

The agency wanted to question Mallya in connection with a contract signed in December 1995 with London-based Benetton Formula Ltd for promotion of the Kingfisher brand abroad.

Mallya had allegedly paid $200,000 to the firm for displaying the Kingfisher logo in Formula One World Championships in London and some European countries in 1996, 1997, and 1998.

The money was allegedly paid without nod from the Indian central bank, in violation of Fera norms.