Question

He had penalty of wealth but he was not happy begin with in spite

Answer 1

in spite of having plenty of wealth he was not happy.

Answer 2

In spite of something is an idiom that is used to express surprise at something. For example: In spite of his age, he still leads an active life. Here the surprise is being expressed at his activeness in spite of his old age.

So the correct construction of the given sentence is as given below:

In spite of having plenty of wealth, he was not happy.

Here the surprise is being expressed at the fact that though he was so rich, yet he was not happy.