Acting on banks' allegations that liquor baron Vijay Mallya had transferred $40 million (nearly Rs 266.11 crore) to his children in "flagrant violation" of various judicial orders, the Supreme Court (SC) on Wednesday asked him to file his response on the matter in three weeks.

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A bench, comprising justices Kurian Joseph and A M Khanwilkar, asked the beleaguered businessman to file an affidavit and fixed the plea of the consortium of banks led by State Bank of India (SBI) for further hearing on February 2.

Senior advocate Shyam Divan, appearing for the banks, alleged that orders of Debt Recovery Tribunal (DRT) and Karnataka High Court have been violated by Mallya by transferring $40 million to his children.

It is a matter of record that Mallya and his firm owe over Rs 6,200 core to the banks and the money should have been deposited, he said.

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Senior advocate C S Vaidyanathan, appearing for Mallya, sought time to respond to the banks' plea, which was granted. 

In October last year the court had rapped Mallya for not making full disclosure of his overseas properties and had asked him to do so within a month.

The bench had also pulled up Mallya for not giving details of $40 million which he had allegedly received from British firm Diageo in February last year, saying it was of the "prima facie view" that proper disclosure as per its earlier order was not made.

The Attorney General had alleged that the $40 million belonged to the consortium of banks which was now stashed in Mallya's Swiss bank account and said that it should be brought back to India or the Supreme Court (SC).

The consortium of banks including SBI had on August 29 last year told the Supreme Court that Mallya had deliberately not made full disclosure of his assets including the $40 million he received on February 25 from Diageo.

It had asked Mallya, who owes over Rs 9,000 crore to around 17 banks, to deposit a "substantial amount" with it to "prove his bonafide" that he was "serious" about meaningful negotiations and settlement.

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