SC questions Mallya over 'truthful' disclosure of assets

The Supreme Court on Thursday asked liquor baron Vijay Mallya whether he spoke truth regarding his assets or not.

The apex court questioned Mallya while hearing the State Bank of India (SBI)-led consortium of banks plea seeking recovery of the loan amount worth Rs. 9,000 crores.

The banks asked the apex court to direct Mallya to bring back 40 million USD which he received from British firm Diageo.

In the last hearing on March 3, the banks conveyed to the apex court that Mallya did not deliberately disclose receipt of 40 million USD from a British company in the form of sale proceedings, as he had transferred the amount to trusts set up for his three children.

 

The consortium also pleaded to the court to ensure that Mallya successfully deposits the money, adding the court should direct him to make a personal appearance if he fails to do so.

The banks had given loans to Mallya's companies - now defunct Kingfisher Airlines, United Breweries and Kingfisher Finvest (India) Ltd.

Earlier on January 11, the apex court granted three weeks time to Mallya to file a reply to the consortium of banks.

The consortium of banks had earlier approached the apex court seeking its intervention in bringing back Mallya to India and also repayment of money which the beleaguered businessman had taken.

The banks, in their plea, told the court that there was an outstanding loan of almost Rs. 9,000 crore against the businessman.

The banks have argued that the business tycoon has not been candid with the court regarding his assets, citing the failure to disclose severance package which he received from Diageo Plc as part of his exit from United Spirits Ltd.

On April 26 last year, the apex court had directed Mallya to disclose his assets to the consortium.

The banks also said the disclosures made by Mallya on his Indian and overseas properties were "vague".

The banks also refuted Mallya's allegation that all 17 banks did not reject the three proposals made by him for repayment of over Rs. 9,000 odd crore in installments.