The Supreme Court of India on Monday rejected United Breweries (UB) Group Chairman Vijay Mallya’s plea for quashing criminal procedures against him in a case relating to alleged infringement of foreign exchange rules.
The bench additionally imposed Rs 10 lakh as costs on Mallya in the case.
The Enforcement Directorate (ED) had alleged that Mallya violated the provisions of Foreign Exchange Regulation Act in masterminding funds to promote his alcohol products abroad over a decade ago.
Mallya had allegedly paid $200,000 to the firm for showing the Kingfisher logo in Formula One World Championships in London and some European nations in 1996, 1997, and 1998.
The cash was allegedly paid without gesture from the Indian national bank, infringing upon Foreign Exchange Regulation Act standards.
UB Group is an Indian conglomerate company headquartered in the City of Bangalore. The company has annual sales of over US$4 billion and a market capitalization of approximately US$12 billion.
UB core business activities include beverages, aviation, electrical and chemicals.
