The Supreme Court order on Tuesday holding Vijay Mallya guilty of contempt of court and asking him to appear on July 10 is unlikely to have an impact on the extradition proceedings against him in London.

There is also a good chance of the entire extradition process getting derailed, if the government does not put up a strong case against Mallya in the London courts. “I am not too optimistic of the outcome. Mallya is expected to take his chances on his extradition rather than face the Indian courts,” said Ramesh Vaidyanathan, Managing Partner of the Mumbai-based law firm, Advaya Legal.

Mallya has been accused of giving away most of the $40-million he had received from Diageo plc, which owns United Spirits, to his children without the knowledge of the courts or his lenders.

The $40 million is part of the $70-million sweatheart deal that Diageo plc had entered into with Mallya in return for his stepping down from all posts in United Spirits.

The Supreme Court held that Mallya had misled it on his wealth. It has now asked him to make a personal appearance before the court on July 10.

Another source close to Mallya said that there is a possibility that the former liquor baron might have in fact not distributed most of the $40 million to his children. “In case he is not able to provide evidence, then he will be in deeper trouble,” the source said.

In case Mallya does not turn up on July 10, then an arrest warrant will be issued for him. But this cannot be executed as he is still based out of London. In case, he does turn up, he will be immediately arrested.

However, with a case against him being tried in the London court, Mallya cannot move out of the city.

“In terms of procedures, the Indian Government is doing the right thing. Hopefully, they have done the investigations right. But whether there is enough substance to make a case of extraditable offence, needs to be seen,” Vaidyanathan said.

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