New Delhi, May 9 (Agencies): The Supreme Court on Tuesday held businessman Vijay Mallya guilty of contempt of court for transferring USD 40 million to his children in violation of the court's order.

"We have found respondent number 3 (Mallya) guilty of contempt of court on two grounds," a bench comprising Justices A K Goel and U U Lalit said.

The apex court directed Mallya, who is presently in the United Kingdom, to appear before it on July 10 to argue on the quantum of punishment in the matter.

The order came on a plea by consortium of banks led by SBI, which had said that Mallya had allegedly transferred USD 40 million which he had received from British firm Diageo, to his children in "flagrant violation" of various judicial orders.

The absconding businessman was arrested by Scotland Yard last month on fraud allegations, which triggered his extradition process in the British courts. However, Mallya was released on bail as he assured the court to abide by all conditions associated with extradition proceedings, including surrendering his passport.

Despite the extradition treaty signed in 1992 between India and the UK, only one successful extradition has taken place - Samirbhai Vinubhai Patel, who was sent back to India in October 2016 to face trial over his involvement in the post-Godhra riots of 2002, the report says.

Last February, India gave a formal extradition request for Mallya through a note verbale. Meanwhile, a joint team of the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) reached London on Tuesday.

Last month, the Ministry of External Affairs (MEA) informed that Mallya's extradition has been stratified by the Secretary of State of the U.K. Government and added that a warrant would soon be released against him.

Mallya, whose now-defunct Kingfisher Airlines allegedly owes more than Rs 9,000 crore to various banks, had fled India on March 2, 2016.

However, unlike Mallya, he had submitted to the extradition order without legal challenge. India had given a formal extradition request for Mallya as per the extradition treaty between India and the UK through a note verbale, a diplomatic communication, on February 8.