Vijay Mallya approaches Karnataka HC, claims banks have recovered Rs 14,000 crore

Mallya, who is currently residing in London, is facing ongoing extradition efforts by the Government of India over loan defaults.

Fugitive businessman Vijay Mallya has approached the Karnataka High Court, requesting clarity on the loan recovery process undertaken by banks. According to a report by ANI, Mallya’s counsel, senior advocate Sajan Poovayya, claimed that despite the repayment of nearly Rs 6,200 crore, banks have already recovered Rs 14,000 crore. Mallya is now seeking a detailed statement from the banks outlining the total amount recovered.

According to ANI, Poovayya argued that although the entire loan amount has been recovered, the recovery process is still ongoing. Based on Mallya's petition, the bench of Justice R. Devdas issued a notice to the banks and loan recovery officers.

Mallya, who is currently residing in London, is facing ongoing extradition efforts by the Government of India over loan defaults. In 2024, Mallya stated that the banks had recovered Rs 14,131.60 crore, which was more than double the judgment debt of Rs 6,203 crore. He further asserted that he continues to be treated as an economic offender despite the recovery of this amount.

In a post on X, Mallya said that unless the Enforcement Directorate (ED) and banks can legally justify the recovery of more than double the debt, he is entitled to relief, which he plans to pursue. The Debt Recovery Tribunal had adjudged the Kingfisher Airlines debt at Rs 6,203 crore, including Rs 1,200 crore in interest.

The Debt Recovery Tribunal adjudged the KFA debt at Rs 6203 crores including Rs 1200 crores of interest. The FM announced in Parliament that through the ED,Banks have recovered Rs 14,131.60 crores from me against the judgement debt of Rs 6203 crores and I am still an economic
Vijay Mallya (@TheVijayMallya) December 18, 2024

Finance Minister Nirmala Sitharaman highlighted several major cases during a debate on the Supplementary Demands for Grants for 2024-2025. Sitharaman stated that the government had restored properties worth Rs 22,280 crore in major economic offence cases. This includes the Rs  14,131.6 crore recovered from Mallya, which has been returned to public sector banks, as reported by ANI.