Vijay Mallya has Rs16,440 in hand and Rs12.6-cr frozen deposits

26 Oct 2016


Vijay MallyaLiquor baron Vijay Mallya on Tuesday disclosed to the Supreme Court his Indian, which include Rs16,440 as cash in hand and the Rs12.6 crore bank deposits attached by the Income Tax Department.

Vijay Mallya, whose defunct Kingfisher Airlines owes over Rs9,000 crore to banks, released a statement on his India assets as of 31 March 2016 as demanded by the Supreme Court.

Mallya also stated he had "investments and cash equivalents" of $5.2 million in overseas assets. But he did not say anything about his bank accounts abroad or cash in hand.

The Supreme Court was on Tuesday hearing a contempt petition against beleaguered businessman Vijay Mallya for violating a court order by not disclosing his assets in India and abroad.

The Supreme Court specifically asked Mallya to explain the status of the $40 million he received as part of a settlement with Diageo.

Mallya had received $40 million as part of $75 million settlement agreed with Diageo, under which the liquor baron stepped down as chairman of Diageo-controlled United Spirits. The remaining amount was to be paid over five years. A debt tribunal, however, halted payment of the remaining $35 million to Mallya.

"But this $40 million must find a place in your accounts. $40 million gone in 40 days," the court observed. "Prima facie we feel you haven't disclosed assets and bank accounts as per court order."

To this, Mallya's lawyer replied he was supposed to declare assets as of 31 March  2016.

Expressing displeasure at Mallya not coming clean on disclosure of all his assets, including the money that he reportedly received from Diageo, a bench of Justices Kurian Joseph and Rohinton F Nariman asked him to furnish complete details of his assets abroad in four weeks.

''We are prima facie of the view that the report has not made a proper disclosure in respect of our order of April 7 directing to make complete disclosure of assets and in particular, the receipt of $40 million as to when it was received and how it has been dealt till date,'' said the bench.

It said that the details Mallya filed earlier in his disclosure statement about his foreign properties do not have reference of cash in hand or bank details and details of assets like he has done for those in India.

A consortium of banks told the Supreme Court that Mr Mallya received $40 million on 25 February 2016, but he didn't inform the court about the payment.

The passport of Mallya, who flew to Britain in March, has been revoked, with a judge in Mumbai issuing a non-bailable warrant for his arrest.

Mallya's Kingfisher Airlines, which ceased operations in October 2012, owed the banks - mostly state-run - over Rs9,000 crore, including interest and fees.

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