Vijay Mallya can face a jail term or fine or both if he does not show up in court on July 10.
Vijay Mallya was held guilty of contempt today by the Supreme Court, which agreed that the liquor baron had misled it on his wealth. Mr Mallya has been ordered to appear before the top court on July 10, in the middle of India's attempts to get the UK to extradite him.
The 61-year-old can face a jail term or fine or both if he does not show up in court.
The contempt petition was moved against him by a group of banks that have been trying to recover around 9,000 crores in unpaid loans to his failed Kingfisher Airlines.
The banks said in their petition that Mr Mallya had received around 40 million dollars from Diageo and had transferred this money to his children's accounts. That money, they argued, could have been used to pay back some of the debt he owes.
Last month, Mr Mallya was briefly arrested in London and granted bail within three hours following India's request that he be sent back to face trial for alleged money laundering.
Mr Mallya has been staying in London for a year now, since he slipped out of India amid attempts by banks to recover their dues.
The flamboyant businessman has been charged with cheating and conspiracy by the Central Bureau of Investigation or CBI that filed a 1,000-page charge-sheet against him for defaulting on a 900 crore loan taken from the IDBI bank in 2009. The CBI probe found that 250 crore of this - given to buy aircraft parts - was diverted abroad.
Earlier this week, his extradition was discussed when home secretaries of India and the UK met in Delhi.