The apex court said that Vijay Mallya deserves imprisonment as he has neither shown remorse nor apologized
The apex court said that Vijay Mallya deserves imprisonment as he has neither shown remorse nor apologized
Supreme Court sentenced on July 11 fugitive businessman vijay mallya Nearly five years after being found guilty of contempt of court, imprisoned for four months and a fine of ₹2,000.
The apex court had on May 9, 2017 found Mallya guilty of contempt for willful disobedience of its order to explain his assets. He did not disclose the $40 million he received from British liquor major Diageo plc following his resignation as chairman of United Spirits Ltd in February 2016.
Mallya had distributed the transaction amount to the beneficiaries including his immediate family members.
A bench headed by Justice UU Lalit observed that Mallya has neither shown remorse for his conduct nor apologized for his actions over the years.
“Keeping in view the fact that contempt [Mallya] Having shown no remorse for his conduct nor made any apology, we impose a sentence of four months and a fine of ₹2000,” Justice Lalit read the verdict.
The court ordered that Mallya deposit the fine amount in the Supreme Court registry within four weeks. Failure to do so will result in additional imprisonment of two months.
The transaction with Diageo, referred to in the May 2017 ruling, has been declared “void and inoperative.”
“We direct that the transaction referred to in the May 9, 2017 judgment, in terms of which $40 million was distributed to the beneficiaries, is void and void,” the court said.
The court directed that Mallya and his beneficiary are bound to deposit the amount received within four weeks with the concerned recovery officer along with eight per cent interest.
If the amount is not deposited within the prescribed period, the Recovery Officer will take appropriate action to recover the amount. The Government of India and its agencies should provide assistance and full cooperation in the recovery work.
Upholding Mallya’s “substantial” punishment and direction to recover the amount, the court said these steps would “uphold the glory of law” and “nil the benefits derived by him and any person claiming under him”. were necessary for.
The court said its directions were to ensure that “the relevant amount is available in execution of decrees passed in the recovery proceedings”.
Reserving the matter for judgment in March, the Supreme Court had said it was “dead-walled” about the ongoing proceedings in the United Kingdom against Mallya, who was treated like a “free man” in that country. was doing.
“We’ve said that there are some proceedings going on in the UK, we don’t know the details of those proceedings, the nature of it or the relief sought in those proceedings, even the number of those proceedings… nothing. All we have to do is So much has been told that something is pending. What is the near future till it will be concluded, even in which court it is pending… we don’t know… nothing. It’s a dead wall So how long can we go on…” Justice Lalit, who was presiding over the three-judge bench, had said.
Court’s amicus curiae and senior advocate Jaideep Gupta had said that not only should Mallya be punished, but the apex court should also confiscate his assets.
The amicus curiae said the court had given Mallya ample opportunity to present his defense through at least one lawyer. The businessman has not done so.
The apex court had on August 30, 2020 dismissed Mallya’s review petition against the 2017 judgment for contempt.
Mallya had informed the court that he had no control over the $40 million as he had already distributed it among his three adult children, who were US citizens.
The banks to which Mallya owed money had sought contempt action against him, arguing that the distribution of $40 million among his three children was in direct violation of a standing order of the Karnataka High Court that any of his Also the asset should not be “set aside, disposed of”. or be subject to the creation of the rights of third parties”.