Ask Mallya to pay $40 million, or appear in court, banks tell Supreme Court

On Friday, the State Bank of India (SBI), leading a consortium of banks, appealed to the Supreme Court to initiate recovery proceedings against Vijay Mallya, who owes the banks Rs 9,000 crore.

Senior Advocate Shyam Divan representing SBI submitted that in August 2016, Mallya deliberately failed to disclose $40 million he received in February 2016 through sale proceedings from a British firm called Diageo.

"The money was received in violation of various orders and injuctions against him. Mallya deliberately failed to disclose this amount and has transferred the money in a trust set up for his three children," Divan said.

The banks appealed for orders be passed to "secure the deposit of the said amount of $40 million before this court or the DRT forthwith, pending disposal of the further recovery proceedings." The banks have also filed a plea seeking contempt proceedings against Mallya since he has not responded or replied to court summons and orders.

In November 2016, a trial court in Delhi issued a non-bailable warrant (NBW) against him for allegedly evading summons in a case of FERA violation. The court was of the opinion that "coercive steps" needed to be taken against the accused.