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.
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.