Vijay Mallya Challenges Banks Over Loan Recovery, Claims Excess Amount Retrieved

Fugitive businessman Vijay Mallya has approached the Karnataka High Court, asserting that banks have recovered more than twice the amount he originally owed in the Kingfisher Airlines loan default case. According to Mallya, the outstanding debt was ₹6,200 crore, but financial institutions have reportedly recovered ₹14,000 crore through asset sales and legal proceedings.

Mallya Seeks Clarity on Loan Recovery Process

Mallya has requested a comprehensive statement from the banks detailing the total recovered amount. In response, the Karnataka High Court, under Justice R Devdas, has issued notices to the banks and loan recovery officers, demanding a transparent account of the amounts collected from Mallya, United Breweries Holdings Limited, and other certificate debtors.

Government’s Stand on the Recovery

Union Finance Minister Nirmala Sitharaman recently disclosed in the Lok Sabha that public sector banks have retrieved ₹14,131.6 crore from the sale of assets linked to Vijay Mallya. This development aligns with India’s broader crackdown on financial defaulters, including other high-profile fugitives like Nirav Modi and Mehul Choksi.

Ongoing Legal Battle and Extradition Efforts

Mallya, who fled to the United Kingdom in 2016 amid allegations of financial fraud, remains a key target for extradition by Indian authorities. The government has been actively pursuing legal avenues to bring him back and ensure accountability for the massive financial irregularities linked to Kingfisher Airlines.

Mallya’s Claim for Relief

In light of the substantial recovery, Mallya argues that he is entitled to legal relief, questioning why banks have collected more than double the outstanding debt. He has urged the Enforcement Directorate and financial institutions to justify this discrepancy.

The Karnataka High Court’s response to Mallya’s plea could set a precedent for similar financial disputes in India. As the case unfolds, its outcome may significantly impact the legal landscape surrounding corporate loan defaults and financial accountability.