INDIA’S Supreme Court has given a “final opportunity” to fugitive businessman Vijay Mallya to appear before it personally or through his lawyer in a contempt case where he has been found guilty.
Mallya, who is currently living in the UK, is accused of bank loan defaults of more than Rs 90 billion (£880 million) in India involving his now-defunct Kingfisher Airlines.
The top court said it has given multiple opportunities to Mallya to appear either personally or through a lawyer.
A bench of justices U U Lalit, S Ravindra Bhat and P S Narasimha posted the contempt case for further hearing after two weeks.
It said Mallya is at liberty to act as per the direction given in its order on November 30 last year, failing which the matter shall be taken to its "logical conclusion".
At the outset, the bench told senior advocate Jaideep Gupta, who has been appointed amicus curiae in the matter, that it has found the contemnor guilty of contempt of court, and now, punishment has to be imposed.
"Going by normal logic, the contemnor has to be heard but from that stage, he has not appeared before the court. What course should the court adopt?" the bench asked Gupta.
Gupta said that the contemnor does not need to be physically present, and he can appear through his counsel, and the court may clarify this further in its order.
Justice Bhat said the case has different colours, and the contemnor has abstained from the proceedings.
"Next hearing, the same thing will happen. We will have to pronounce the sentence in absentia. In this situation, in other countries courts are not powerless. We want assistance in that regard," Justice Bhat said.
The bench said this problem should not become a gateway for courts of first instance to adopt this course.
"We will have to say that this is in extraordinary circumstances in which he has been found guilty and is on the run. We need to have appropriate safeguards," it said.
Gupta said the court would have to make it clear what would happen and what consequences would follow if Mallya does not appear either personally or through his lawyer.
Solicitor general Tushar Mehta, appearing for the government, said the court has inherent jurisdiction in contempt cases and that it has given enough opportunity to Mallya, which he has not taken.
He said the Indian government has been informed by UK officials that there is some confidential proceeding going on which cannot be shared.
The bench asked Gupta, "What should the court do? Should we appoint an amicus for the contemnor or do we proceed ahead? Normally, in criminal matters, we appoint an amicus to represent the accused."
Gupta said if no lawyer appears for him or makes submissions on behalf of him, then the court should appoint an amicus curiae to represent the accused.
On November 30 last year, the top court had said it could wait any longer and the sentencing aspect in the contempt matter against Mallya would be dealt with finally.
It had in 2020 dismissed Mallya's plea seeking a review of its 2017 verdict which held him guilty of contempt for transferring $40 million (£29.46m) to his children in violation of court orders.
On January 18 last year, the Indian government had said it was making all efforts to extradite Mallya from the UK but the process is being delayed due to some legal issues involved in the matter.
Mallya has been in the UK since March 2016. He is on bail on an extradition warrant executed three years ago by the Scotland Yard on April 18, 2017.
(PTI)
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Rachel Reeves, speaks at the Regional Investment Summit at Edgbaston Stadium on October 21, 2025 in Birmingham.
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Rachel Reeves rules out income tax rise: Report
Nov 14, 2025
CHANCELLOR Rachel Reeves does not plan to raise income tax rates in this month’s budget, after borrowing costs rose earlier on reports that she had reversed plans for tax increases.
Reeves is expected to need to raise tens of billions of pounds to meet her fiscal targets, and her recent remark that “we will all have to contribute” had been viewed as a sign that the government might break its main election pledge and increase income tax rates.
However, updated forecasts from the Office for Budget Responsibility showed an improved fiscal outlook, two sources familiar with the situation told Reuters. One of them confirmed that the government did not intend to raise income tax based on the latest figures.
British government bond prices fell, with yields on 20- and 30-year gilts rising by more than 14 basis points before easing later. By 1030 GMT, yields were up by nearly 10 basis points but still heading for their worst day since July 2, when Reeves’ emotional appearance in parliament unsettled markets. Ten-year borrowing costs were up by 8 basis points at 4.56 per cent, on track for their biggest daily rise since September 25.
A Treasury spokesperson declined to comment on tax policy.
“The chancellor will deliver a budget that takes the fair choices to build strong foundations to secure Britain’s future,” the spokesperson said.
Reeves had pledged to strengthen the public finances and ensure she had enough fiscal space to manage global economic volatility, they said.
MARKETS HAD TAKEN REASSURANCE FROM TALK OF TAX RISES
In recent weeks, investors had responded positively to indications from Reeves that she was prepared to take difficult steps to meet her fiscal goal of balancing the budget by 2029/2030, excluding investment spending. Bond yields move inversely to prices.
Investors have said they have greater confidence in revenue forecasts based on increases in income tax rather than multiple smaller taxes that can be easier to avoid.
Economist Kallum Pickering of Peel Hunt said Reeves would likely choose a “haphazard patchwork of smaller anti-growth tax increases”.
“That would be a bad outcome,” he said. “It would add to uncertainty, further damage the government’s already tarnished credibility, and complicate any BoE judgement to potentially offset tax rises with rate cuts.”
One option for Reeves to raise revenue would be to lower the income thresholds at which different rates of tax apply.
Paul Johnson, a former director of the Institute of Fiscal Studies, told BBC radio that such a change could raise significant sums for the Treasury but would place a larger burden on lower-paid workers.
One source familiar with the matter said no final decisions had been made and that another round of OBR forecasts was still to come, which could affect the figures used for the budget.
THINK TANKS HAVE WARNED OF NEED TO RAISE MONEY
The National Institute of Economic and Social Research had warned that Reeves needed major tax increases to avoid a repeat of the loss of market confidence that ended Liz Truss’s premiership.
The FT reported that the decision to change plans was made this week and communicated to the OBR on Wednesday. It said people briefed on the revisions indicated Reeves would instead pursue a “smorgasbord” of narrowly targeted tax increases.
Reeves and prime minister Keir Starmer had said before last year’s election that they would not raise taxes for “working people”, including income tax, social security contributions and value-added tax.
The pledge was intended to assure voters that a Labour government would not adopt ideological tax-and-spend policies.
But in its first budget a year ago, the government raised 40 billion pounds for infrastructure and public services, mainly through higher business taxes. The economic outlook has worsened since then.
Earlier this week, Reeves told BBC radio she could only stick to the manifesto commitments if she made deep cuts in capital spending.
(With inputs from Reuters)
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