Supreme Court sentences Vijay Mallya to four-month imprisonment in contempt case, imposes Rs 2,000 fine

The Supreme Court on Monday sentenced fugitive businessman Vijay Mallya, accused in bank loan default case of over Rs 9,000 crore involving his defunct Kingfisher Airlines, to four months’ imprisonment in a contempt of court case.

A bench headed by Justice U U Lalit also imposed a fine of Rs 2,000 on Mallya. The top court had on March 10 reserved its order in the matter, observing that proceedings against Mallya have hit a "dead wall".

The apex court had in 2020 dismissed Mallya's plea seeking review of the 2017 verdict which held him guilty of contempt for transferring USD 40 million (one million = ten lakh) to his children in violation of court orders. 

Pronouncing the sentence, the top court said that Mallya did not show any remorse for his conduct and did not appear before it during the sentence hearing. It added that adequate sentence must be imposed on him to “uphold the majesty of law” and that directions need to be issued to ensure that the amount in dispute in available for execution of the orders. 

Hence, the court directed Mallya to deposit USD 40 million with 8 per cent interest within four weeks, failing which attachment proceedings will be initiated against his properties. 

Observing that it had waited "sufficiently long", the apex court on February 10 had fixed the contempt case against Mallya for hearing and had given him the last opportunity to appear before it either personally or through his lawyer.

The top court had said it has given multiple opportunities to Mallya to appear either personally or through a lawyer and had even given specific directions in its order dated November 30, 2021.

Earlier, a consortium of lending banks led by State Bank of India had moved the apex court alleging that Mallya was not following the court orders on repayment of loan which was then over Rs 9,000 crore.

It was alleged that he was not disclosing the assets and moreover, transferring them to his children in violation of the restraint orders.

Solicitor General Tushar Mehta, appearing for the Centre, had earlier said that the court has inherent jurisdiction in contempt cases and that it has given enough opportunity to Mallya, which he has not taken.

On November 30 last year, the top court had said it cannot wait any longer and the sentencing aspect in the contempt matter against Mallya would be dealt with finally.

Mallya was held guilty of contempt in 2017, and the matter was thereafter to be listed to hear him on the proposed punishment to be awarded to him.

The top court had in 2020 dismissed Mallya's plea seeking review of the 2017 verdict which held him guilty of contempt for transferring USD 40 million to his children in violation of court orders.

The apex court had noted that as per an office memorandum, under the signature of the deputy secretary (extradition) of the Ministry of External Affairs (MEA), the proceedings for extradition have attained finality and Mallya has "exhausted all avenues for appeal" in the UK.

Mallya has been in the UK since March 2016. He is on bail on an extradition warrant executed by the Scotland Yard on April 18, 2017.