The Apex court SC imposes Rs 10 lakh fine on Vijay Mallya on FERA case
The apex court of India Supreme Court has dismissed UB Group
chief Vijay Mallya's plea seeking quashing of criminal proceedings against him
in a case pertaining to violation of foreign exchange rules.
A bench headed by Justice J.S. Khehar also imposed Rs 10
lakh as costs on Mr. Mallya in the case.
Earlier, the apex court had issued notice to the Enforcement
Directorate (ED) on the UB Group chief’s plea against the Delhi High Court
order turning down his appeal for quashing criminal proceedings in a trial
court for alleged 'wilful' disobedience of summons issued to him by the ED.
The ED had alleged that Mr. Mallya violated the provisions
of Foreign Exchange Regulation Act (FERA) in arranging funds to advertise his
liquor products abroad over a decade ago.
The agency wanted to question Mr. Mallya in connection with
a contract signed in December 1995 with London-based firm Benetton Formula Ltd
for promotion of the Kingfisher brand abroad.
Mr. Mallya had allegedly paid 200,000 dollars to the British
firm for displaying the Kingfisher logo in Formula One World Championships in
London and some European countries in 1996, 1997 and 1998.
The money was allegedly paid without prior approval from the
RBI in violation of FERA norms.