The Supreme Court on Wednesday asked businessman Vijay Mallya to explain why he transferred the $40 million payouts he received from London-based spirits manufacturer Diageo Plc. To his kids.
A bench comprising justices Kurian Joseph and A.M. Khanwilkar was hearing a plea filed by a consortium of banks that sought to regain the $40 million from Mallya.
On 25 November, within an affidavit submitted before the apex court, Mallya confessed the cash had been transferred to his three kids—Siddharth, Leena and Tanya Mallya—who were US citizens and sole beneficiaries of the three specific trusts over which he had no control in his individual capacity.
Mallya had received the payment of $40 million out of a $75 million package from Diageo following his resignation as chairman of United Spirits Ltd in February 2016.
In April, the apex court directed all of the assets held by him and his family, following the association of creditors spurned his offer to repay Rs4,000 crore to settle the debt of Kingfisher Airlines. To be disclosed by Mallya He afterwards consented to disclose a list of assets held by him in India in a sealed envelope and requested it to not hand this information to banks.
The banks had transferred the debt recovery tribunal against Kingfisher Airlines in 2013 for defaulting on loans. Airline. Owes the association of 17 banks a combined Rs9,091 crore by The banks have informed the court they were willing to negotiate a resolution.
In a 13 March statement, Mallya claimed that banks had already recovered Rs2,494 crore from Kingfisher Airlines since 2013.
The case will soon be heard next on 2 February.