NewDelhi/Nagpur: The Supreme Court on Monday 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.