A State Bank of India-led banking consortium moved the Supreme Court on Thursday against Vijay Mallya, alleging that the former owner of Kingfisher Airlines has not complied with the apex court’s order to fully disclose all his assets. The petitioners have requested for an urgent hearing, reported The Hindu.
The bench of Justices Kurian Joseph and Rohinton Nariman reportedly agreed to hear the banks' plea on July 18. In April, the bench had asked Mallya to cooperate with the banks in recovery of their losses. Mallya is accused of several loan defaulting cases and owes around Rs 9,000 crore to 17 Indian banks.
Meanwhile, the Debt Recovery Tribunal on Wednesday said that its order, issued on March 7, that restricted the transfer of $75 million (Rs 500 crore) from British liquor company Diageo Plc and two of its subsidiaries to Mallya is "infructuous" because around $40 million (Rs 266 crore) was transferred much earlier to the order date. A petition becomes infructuous when the fundamental premises upon which it was filed no longer exist. Diageo Plc was to pay Mallya Rs 515 crore as part of a deal after he resigned as chairman of United Spirits.
DRT Presiding Officer CR Benakanahalli was hearing submissions made by the Service Tax Department of Mumbai, which is seeking recovery of more than Rs 1,000 crore from Mallya and his subsidiary companies, reported PTI. The tribunal said it cannot order Mallya and Diageo to attach the remaining $35 million (Rs 232 crore) because the money has not yet been credited to the beneficiary.
"Unless and until there is breach of terms and conditions and Mallya or the companies are found at fault, the tribunal can neither interfere nor give direction to the parties involved,” he said. On June 11, the Enforcement Directorate attached properties worth Rs 1,411 crore belonging to Mallya and his company United Breweries.
Mallya was declared a proclaimed offender by a special Prevention of Money Laundering Act court in Mumbai in June. According to Indian law, a proclaimed offender is one who is absconding despite an arrest warrant issued against them. The Enforcement Directorate had moved court to have Mallya declared a proclaimed offender as this is a prerequisite for a red corner notice (an international crime alert) to be issued against him. Mallya left the country on March 2 and is now in the United Kingdom.