Vijay Mallya was sentenced to imprisonment in the contempt of court case, not in the 9000 crore bank loan default case. - FACTLY
Sai Krishna Muthyanolla
July 14, 2022
A social media post which claims that the Supreme Court has penalized Vijay Mallya with four months jail term and Rs. 2000 fine in Rs. 9000 crore loan case is being widely shared across all platforms. Through this article let’s fact-check the claim made in the post.
Claim: Supreme Court has penalized Vijay Mallya with four months jail term and Rs. 2000 fine in Rs. 9000 crore loan case.
Fact: Recently, the Supreme Court sentenced Vijay Mallya to imprisonment. However, the court pronounced this judgement in a contempt of court case and not for a loan default case filed against him. In 2017, the SBI consortium approached the SC with a contempt of court petition against Vijay Mallya, alleging that he hid a financial transaction of $40 million against the court order in a case related to Rs. 9000 crore loan default. The court held Vijay Mallya guilty of this contempt of court petition back in May 2017 itself. However, the judgment is pronounced recently. This judgement against contempt of court petition is being misconstrued as the court sentenced Mallya to jail in the 9000 crore loan default case. Hence the claim made in the post is MISLEADING.
The Supreme Court of India on 11 July 2022 sentenced liquor baron Vijay Mallya to four months imprisonment and Rs. 2000 fine. In case of failure to deposit the fine amount within the stipulated time, he would have to undergo further sentence of two months.
While it is true that the SC has penalized Vijay Mallya with jail term, the court pronounced this judgment in a contempt of court case filed in 2017 and not in the money laundering case in which Vijay Mallya is alleged of laundering over Rs. 9000 crores lent by multiple banks. Further, it is noteworthy to mention that the apex court had found him guilty of contempt in 2017.
What was the 2017 contempt case against Vijay Mallya?
Earlier, Vijay Mallya was dragged to court by SBI led consortium of banks alleging him of defaulting loans over Rs. 9000 crores. A case was filed in the Karnataka High Court and his properties were attached.
In matters related to the above mentioned loan defaulte case, SBI led consortium of banks in 2017 approached the Supreme Court alleging that Vijay Mallya was not complying with the court orders regarding disclosure of assets and financial transactions. The bank consortium has alleged that Mallya in violation of court rulings transferred $40 million to his children.
The Supreme Court later in May 2017 held Vijay Mallya guilty of contempt of court for transferring $40 million to his children in violation of the Karnataka High court’s order and subsequently the court reserved its judgment.
It is on 11 July 2022 that the Supreme Court pronounced the judgement sentencing Mallya with imprisonment. Further, the court directed that Mallya, and his beneficiaries are bound to deposit the amount received by them, along with 8% interest per annum, with the recovery officer concerned within four weeks.
All this shows that the recent SC’s judgment in a contempt of court case against Mallya is misconstrued as the Supreme Court sentencing him to jail in the Rs. 9000 crore loan default case. Though the contempt of court case has it roots in the loan default case, the recent judgment is not the result of the loan default case.
To sum it up, the Supreme Court sentenced Vijay Mallya to imprisonment for contempt of court, not in the Rs. 9000 crores loan default case.