SC may reverse Vijay Mallya’s transfer of $39 million to kin

The Supreme Court on Thursday indicated it may consider reversing the financial transaction whereby Vijay Mallya transferred a $39-million payout by Diageo Plc to his wife and children in violation of court orders even as it reserved its order on the issue. The order will spell out the sentence as the top court has already convicted chairman of the now-defunct Kingfisher Airlines for contempt of court.

A bench led by Justice U U Lalit also debated if it should pass a “sequestration” order that declares Mallya bankrupt so that his assets can be taken over, or just sentence him to a jail term in absentia so that it can be carried out whenever he returns to India. Earlier, it decided to go ahead with his sentencing, citing uncertainty surrounding the UK proceedings against the fugitive businessman. Banks had moved the top court for recovery of over `9,000 crore by way of dues from Mallya who had fled to the UK in March 2016. Mallya, who

was represented by his lawyers, was then asked to make a truthful disclosure of his assets and liabilities. Days after he submitted a statement, banks pointed out that he had, in defiance of court orders not to further dissipate his assets, transferred the Diageo payout to trusts run by his wife and children. Mallya was convicted for contempt.