State Bank of India and Ors. Vs Dr. Vijay Mallya (Supreme Court of India)
The Supreme Court considered the punishment and corrective relief arising from its judgment of 9 May 2017 holding Dr. Vijay Mallya guilty of contempt. The original finding concerned failure to disclose assets as directed by the Supreme Court and breach of the Karnataka High Court’s restraint orders dated 3 September and 13 November 2013. The orders prohibited alienation of movable and immovable property, including assets subsequently received or controlled by the restrained parties.
The controversy arose after US$40 million paid by Diageo Plc reached an account with Edmond De Rothschild (Suisse) S.A. on 25 February 2016. On Mallya’s instructions, US$39,999,993.99 was transferred on 26 and 29 February 2016 to three trusts benefiting his son Siddartha and daughters Leena and Tanya. The Court held that the transfers placed the funds beyond the reach of the recovery proceedings and violated the restraint orders.
Although the Supreme Court had found contempt in 2017, it deferred sentencing to give Mallya an opportunity to appear and address punishment. His review petition was rejected on 3 August 2020. His physical appearance remained unresolved amid proceedings in the United Kingdom, including an extradition process and a separate confidential legal issue described in an official memorandum.
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