Top Court sentences fugitive industrialist Vijay Mallya to four months imprisonment and ₹2,000 fine in contempt of the case

Case: State Bank of India & Ors vs Dr. Vijay Mallya

Bench: Justices Uday Umesh Lalit, S Ravindra Bhat, and PS Narasimha 

On Monday, the Top Court sentenced fugitive industrialist Vijay Mallya to four months imprisonment and a ₹2,000 fine in contempt of the case against him. Additionally, the Court ordered the fugitive industrialist to deposit 40 million USD with interest within four weeks, failing which his property would be attached. The fine is to be deposited with the Court's Legal Services Committee and the sentence would increase by two months if the same is not done.

The Court clarified that the punishments for contempt were inflicted as Mallaya did not show any remorse or apologized for his conduct. The Bench also directed the government including the Ministry of External Affairs to carry out the directions with due diligence and a compliance report to be submitted to the registry of this court.

The contempt plea was moved by the State Bank of India (SBI) and other banks. They sought a direction from Mallya to deposit $40 million received from offshore firm Diageo. The banks alleged that Mallya suppressed facts and diverted the money to his son and daughter in violation of the orders passed by the Karnataka HC.

Vijay Mallya is accused of defaulting on a bank loan of over ₹ 9,000 crores involving his now-defunct Kingfisher Airlines.

The hearing took place in the absence of Vijay Mallya who fled to the UK.

The Centre had earlier informed the court that although Vijay Mallya was allowed extradition from the UK, he could not be brought to India because of "secret" proceedings pending against him there, the details of which are unknown to the Centre.

The court had deferred the hearing a few times to allow Vijay Mallya to appear but had finally decided to proceed in his absence in light of his refusal to appear.