Mallya, remittance recipients did not deposit money until August 18: DRT agent at SC

A debt collection officer from a Bangalore debt collection court told the Supreme Court that neither Vijay Mallya, who was sentenced to four months in jail for contempt of court, nor any other beneficiary of the transfer case of funds, did not deposit any amount with the court. until August 18. On July 11, the High Court sentenced Mallya to four months in prison for contempt of court and ordered her and the beneficiaries of said $40 million transactions to deposit the amount received with interest at the rate of 8% per year with the collection agent concerned within four weeks.

The bench had also asked the Center to ensure the presence of the fugitive businessman, who has been in the United Kingdom (UK) since 2016, to serve a prison sentence.

A bench consisting of Chief Justice Uday Umesh Lalit and Justice S Ravindra Bhat will consider the plea, filed by a consortium of banks led by the State Bank of India, for retrial on Monday. “It is further submitted that a letter dated August 18, 2022 … received from the Collection Agent-2, DRT-2, Bengaluru stating that the Collection Agent has not received any monies nor from the Contemnor ( Mallya) or beneficiaries, till date,” said the official report of the case uploaded to the Supreme Court’s website.

The high court will also likely consider letters submitted by the Home Office regarding further developments in the case on Monday. Earlier, when sentencing Mallya, 66, the bench said he had never shown remorse or apologized for his conduct and that an adequate sentence should be meted out to maintain the majesty of the law.

It also fined Mallya Rs 2,000, who was found in contempt of court by the highest court on May 9, 2017, for transferring $40 million to her children in violation of court orders.

He had stated in the case that the amount was not deposited, that the relevant debt collector would have the right to initiate proper proceedings for the recovery of the money, and that the Government of India and all the agencies concerned would provide their assistance and full cooperation.

“He must be willing to take appropriate action, including the appointment of one or more judicial auditors,” the court had said.

He said that if the amount of the fine of Rs 2,000 is not deposited within the time limit, Mallya will face a new sentence of two months.

The transactions covered by the judgment and the order of May 9, 2017, under which the amount of 40 million dollars was paid to the beneficiaries, are deemed “null and ineffective”, the court said.

The bench noted that in its May 9, 2017 verdict, the Supreme Court found that the action of part of Mallya in disbursing the $40 million was contrary to the ‘text and content’ of the orders issued. by the High Court of Karnataka. and that the despiser was in contempt.

Mallya has been charged in a default of over Rs 9,000 crore case involving his defunct Kingfisher Airlines.

The Supreme Court in 2020 rejected Mallya’s plea for a review of the May 2017 verdict.

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

A consortium of lending banks led by the State Bank of India had moved the Supreme Court alleging that Mallya was not following court orders on repayment of the loan which then exceeded Rs 9,000 crore.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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