The Supreme Court on Monday sentenced businessman Vijay Mallya to four months of jail for contempt over the transfer of $40 million abroad despite court orders against such transactions.
The court declared void the transfer of the money from the funds received from British firm Diageo, which had acquired his company United Spirits NSE -0.39 %, to trusts in the name of his children in the US. It ordered Mallya, who is facing proceedings in the UK for extradition to India and was sentenced in absentia, to bring back the $40 million with an interest of 8% a year to India within four weeks to pay his dues to creditors. A special recovery officer will recover the money from his assets if he failed to do so. The Indian government will assist the officer in recovering the amount, the court said.
