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Vijay Mallya has left the country, Attorney General tells SC

The apex court bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman issued notice as Attorney General Mukul Rohatgi told the court that Mallya left the country soon after they moved applications on March 2.

India TV Business Desk [ Updated: March 09, 2016 16:47 IST ]
vijay mallya
Image Source : PTI vijay mallya

New Delhi: The Supreme Court today issued a notice to liquor baron Vijay Mallya in connection with a plea seeking to restrain him from travelling abroad. 

The apex court bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman issued notice as Attorney General Mukul Rohatgi told the court that Mallya left the country soon after they moved applications on March 2 before Bengaluru-based Debt Recovery Tribunal to restrain Diageo from paying him $75 million.

The consortium of 17 banks led by the State Bank of India had sought order restraining Mallya from leaving the country, his arrest and impounding of his passport. Banks have challenged March 4 order of the Karnataka High Court not accepting their plea.

The notice will be issued to him personally, through his company, through his lawyers who appeared for him in the Karnataka High Court and in DRT and through the Indian High Commission in London.

Also Read: Vijay Mallya: From the 'King of Good Times' to 'poster boy of bad loans'

The notice will also be served on him on his official Rajya Sabha email ID.

Addressing the court, Rohatgi said that the secured assets which Mallya has pledged are not even 1/15th of more than Rs.9,000 crore which he had taken for his now defunct Kingfisher Airlines.

As the court asked, how the banks could advance such a huge loan without matching securities, Rohatgi told the court that they were given against the brand and logo of Kingfisher Airlines which at that point of time was huge but now has collapsed.

Issuing notice, the court gave Mallya two weeks to respond as it directed the next hearing of the matter on March 30.

The apex court also questioned the banks why loans were given to the liquor baron when he was a defaulter and was under trial in the law court. 

The banks on Tuesday requested the court for the arrest of Vijay Mallya in order to recover the loan worth Rs 9,000 crore and also asked for his passport to be seized in order to restrain him from leaving India. 

However, based on CBI inputs, the Attorney General told Supreme Court that Mallya has already left India on March 2.

The apex court has asked for a response from Mallya within two weeks.    

The apex court bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman issued notice as Attorney General Mukul Rohatgi told the court that Mallya left the country soon after they moved applications on March 2 before Bengaluru-based Debt Recovery Tribunal to restrain Diageo from paying him $75 million.

The consortium of 17 banks led by the State Bank of India had sought order restraining Mallya from leaving the country, his arrest and impounding of his passport. Banks have challenged March 4 order of the Karnataka High Court not accepting their plea.

The notice will be issued to him personally, through his company, through his lawyers who appeared for him in the Karnataka High Court and in DRT and through the Indian High Commission in London.

The notice will also be served on him on his official Rajya Sabha email ID.

Addressing the court, Rohatgi said that the secured assets which Mallya has pledged are not even 1/15th of more than Rs.9,000 crore which he had taken for his now defunct Kingfisher Airlines.

As the court asked, how the banks could advance such a huge loan without matching securities, Rohatgi told the court that they were given against the brand and logo of Kingfisher Airlines which at that point of time was huge but now has collapsed.

Issuing notice, the court gave Mallya two weeks to respond as it directed the next hearing of the matter on March 30.

(With IANS inputs)

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