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SC gives Vijay Mallya three weeks to respond to banks’ plea seeking $40 million from him

The SBI-led consortium has accused the beleaguered businessman of violating court orders by transferring money – given to him by Diageo – to his son.

The Supreme Court on Wednesday issued a notice to beleaguered businessman Vijay Mallya, directing him to submit an affidavit in response to a petition filed against him by a consortium of banks led by the State Bank of India. The banks have demanded that Mallya deposit in the court the $40 million (approximately Rs 273 crore) he is believed to have received from British firm Diageo last February, PTI reported.

The counsel for the banks, senior advocate Shyam Divan, said that Mallya’s move to transfer the $40 million to his son’s account was in “flagrant violation” of the Karnataka High Court and Debt Recovery Tribunal’s orders. The top court gave him three weeks to respond to the plea and scheduled the next hearing for February 2.

Attorney General Mukul Rohatgi argued that the $40 million belonged to the consortium, claiming that Mallya had stashed the money in a Swiss bank account. The Supreme Court bench, comprising justices Kurian Joseph and AM Khanwilkar, rapped the businessman for not disclosing the assets as per their earlier order.

In October 2016, the apex court had directed Mallya to disclose his overseas properties. Mallya had claimed earlier that he was not paid the $40 million in cash and that the amount was spent to make payments and used for other business requirements. In March, Diageo had had it has paid Mallya the amount as part of the Rs 515-crore payment they were to give him for resigning as chairman of United Spirits. Earlier, the Debt Recovery Tribunal had barred Mallya from receiving the payment, but Diageo said it did not receive the DRT’s order.

The Central Bureau of Investigation had obtained a non-bailable warrant against the businessman in November 2016 and initiated the process to have him extradited from the United Kingdom. The warrant was issued in connection with the case in which Mallya owes the consortium of 17 banks a whopping Rs 9,000 crore.

Mallya left the country on March 2, 2016, and has been in the United Kingdom since then. He had claimed to be on a “forced exile” and unable to return to India. The Centre, however, had countered his argument, saying Mallya could have easily applied for an Emergency Certificate at an Indian Embassy or High Commission in the UK.

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As India turns 70, London School of Economics asks some provocative questions

Is India ready to become a global superpower?

Meaningful changes have always been driven by the right, but inconvenient questions. As India completes 70 years of its sovereign journey, we could do two things – celebrate, pay our token tributes and move on, or take the time to reflect and assess if our course needs correction. The ‘India @ 70: LSE India Summit’, the annual flagship summit of the LSE (London School of Economics) South Asia Centre, is posing some fundamental but complex questions that define our future direction as a nation. Through an honest debate – built on new research, applied knowledge and ground realities – with an eclectic mix of thought leaders and industry stalwarts, this summit hopes to create a thought-provoking discourse.

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Is it time to re-look at constitution and citizenship in India?

The Constitution of India is fundamental to the country’s identity as a democratic power. But notwithstanding its historical authority, is it perhaps time to examine its relevance? The Constitution was drafted at a time when independent India was still a young entity. So granting overwhelming powers to the government may have helped during the early years. But in the current times, they may prove to be more discriminatory than egalitarian. Our constitution borrowed laws from other countries and continues to retain them, while the origin countries have updated them since then. So, do we need a complete overhaul of the constitution? An expert panel led by Dr Mukulika Banerjee of LSE, including political and economic commentator S Gurumurthy, Madhav Khosla of Columbia University, Niraja Gopal Jayal of JNU, Chintan Chandrachud the author of the book Balanced Constitutionalism and sociologist, legal researcher and Director of Council for Social Development Kalpana Kannabiran will seek answers to this.

Is CSR simply forced philanthropy?

While India pioneered the mandatory minimum CSR spend, has it succeeded in driving impact? Corporate social responsibility has many dynamics at play. Are CSR initiatives mere tokenism for compliance? Despite government guidelines and directives, are CSR activities well-thought out initiatives, which are monitored and measured for impact? The CSR stipulations have also spawned the proliferation of ambiguous NGOs. The session, ‘Does forced philanthropy work – CSR in India?” will raise these questions of intent, ethics and integrity. It will be moderated by Professor Harry Barkema and have industry veterans such as Mukund Rajan (Chairman, Tata Council for Community Initiatives), Onkar S Kanwar (Chairman and CEO, Apollo Tyres), Anu Aga (former Chairman, Thermax) and Rahul Bajaj (Chairman, Bajaj Group) on the panel.

Can India punch above its weight to be considered on par with other super-powers?

At 70, can India mobilize its strengths and galvanize into the role of a serious power player on the global stage? The question is related to the whole new perception of India as a dominant power in South Asia rather than as a Third World country, enabled by our foreign policies, defense strategies and a buoyant economy. The country’s status abroad is key in its emergence as a heavyweight but the foreign service officers’ cadre no longer draws top talent. Is India equipped right for its aspirations? The ‘India Abroad: From Third World to Regional Power’ panel will explore India’s foreign policy with Ashley Tellis, Meera Shankar (Former Foreign Secretary), Kanwal Sibal (Former Foreign Secretary), Jayant Prasad and Rakesh Sood.

Are we under-estimating how critical water is in India’s race ahead?

At no other time has water as a natural resource assumed such a big significance. Studies estimate that by 2025 the country will become ‘water–stressed’. While water has been the bone of contention between states and controlling access to water, a source for political power, has water security received the due attention in economic policies and development plans? Relevant to the central issue of water security is also the issue of ‘virtual water’. Virtual water corresponds to the water content (used) in goods and services, bulk of which is in food grains. Through food grain exports, India is a large virtual net exporter of water. In 2014-15, just through export of rice, India exported 10 trillion litres of virtual water. With India’s water security looking grim, are we making the right economic choices? Acclaimed author and academic from the Institute of Economic Growth, Delhi, Amita Bavisar will moderate the session ‘Does India need virtual water?’

Delve into this rich confluence of ideas and more at the ‘India @ 70: LSE India Summit’, presented by Apollo Tyres in association with the British Council and organized by Teamworks Arts during March 29-31, 2017 at the India Habitat Centre, New Delhi. To catch ‘India @ 70’ live online, register here.

At the venue, you could also visit the Partition Museum. Dedicated to the memory of one of the most conflict-ridden chapters in our country’s history, the museum will exhibit a unique archive of rare photographs, letters, press reports and audio recordings from The Partition Museum, Amritsar.

This article was produced by the Scroll marketing team on behalf of Teamwork Arts and not by the Scroll editorial team.