Businessman Vijay Mallya has petitioned the Karnataka High Court to get banks to provide a statement on the total amount of loans that were recouped from him. Although he was obliged to repay ₹6,200 crore, Mallya contends that banks have already recouped ₹14,000 crore, which is a substantial sum in excess of the initial loan amount.
Mallya’s counsel stated that despite banks recovering ₹10,200 crore so far, the process continues. He has urged the banks to provide a detailed recovery account. Following his petition, the High Court bench, led by Justice R. Devdas, issued notices to banks and loan recovery officers.
Extradition Proceedings
Vijay Mallya, presently residing in London, is undergoing extradition proceedings initiated by the Indian government concerning loan defaults linked to Kingfisher Airlines. Despite his claims on December 18, 2024, that banks had recovered ₹14,131.60 crore against the judgment debt of ₹6,203 crore, he is still considered an “economic offender.”
Mallya’s Legal Stand
In a social media post, Mallya questioned the Enforcement Directorate (ED) and banks, demanding a legal explanation for recovering more than double the debt. He stated, “Unless the ED and banks can legally justify how they have taken more than two times the debt, I am entitled to relief which I will pursue.”
Government’s Stand on Economic Offences
Finance Minister Nirmala Sitharaman recently detailed recoveries in major economic offence cases. While addressing the Supplementary Demands for Grants for 2024-25, she stated that the government restored properties worth ₹22,280 crore. Among these, ₹14,131.60 crore was recovered from Mallya and returned to public sector banks.
Mallya’s plea in the Karnataka High Court raises questions about loan recovery mechanisms and how financial institutions handle high-profile defaults. The case is now pending further legal proceedings.
