SC directs banks to answer Mallya’s plea for recall of contempt notice

The Apex Court on Monday has directed the syndicate of banks led by the SBI to answer to a much bugged liquor tycoon Vijay Mallya’s plea seeking recall of the notice of contempt for allegedly not making full disclosure of all the assets owned by him and his family as directed by the top court earlier. The bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman has given 10 days time to the State Bank of India (SBI) and to the liquor baron, Mallya, a week’s time to file his rejoinder on September 27 at the time of the hearing of the matter.
Contending for Mallya, advocate Mahesh Agarwal said that the disclosure of the assets was for the settlement of outstanding dues with the banks, and since no settlement was taking place, he was not obliged to make disclosure and consequently there was no contempt. Where on the other side, sticking to his contention, Attorney General, alleged Mallya of not yet disclosing about $40 million which he acquired from British spirits maker Diageo as a part of severance package. The consortium has therefore moved to the top court seeking the settlement of his outstanding dues amounting to more than Rs 9,000 crore.
Rohatgi also told the court that Mallya’s plea for the recall of contempt notice could not be entertained, since neither he has entered appearance nor he has moved an application for exemption from appearance. Reliance to which was placed to the court’s April 7 order for the same.

By:
Paridhi Shivhare,
IV Yr, SLS, Pune

LEGGE RHYTHMS