Fugitive businessman Vijay Mallya has moved the Karnataka High Court, challenging debt recovery proceedings against the now-defunct Kingfisher Airlines. Mallya has alleged that the banks have recovered more than twice the amount owed, questioning the legitimacy of further recovery actions.
Mallya’s petition, filed on February 3, was heard briefly on Wednesday by Justice R Devdas, who issued notices to ten banks, a recovery official, and an asset reconstruction company involved in the proceedings.
“Principal Debt Amount Recovered Multiple Times Over”
Senior Advocate Sajan Poovayya, representing Mallya, stated in court that they were not seeking interim relief at this stage, awaiting the respondents’ replies.
Mallya contends that while Kingfisher Airlines owed around ₹6,200 crore, the authorities have already recovered the principal debt amount multiple times over. He has requested the court to stay any further recovery actions and direct the banks to provide a statement of accounts detailing amounts owed by him, United Breweries Holdings, and other related entities.
Banks Have Already Recovered Over ₹14,000 Crore: Mallya
Mallya has consistently maintained that the banks have recovered more than what was owed. In December 2023, he claimed on social media that banks had already received over twice the ₹6,203 crore debt adjudicated by the Debt Recovery Tribunal (DRT), including interest.
He also referenced a statement by Union Finance Minister Nirmala Sitharaman in the Lok Sabha, where she reportedly said that assets worth ₹14,131.6 crore belonging to Mallya had been restored to public sector banks.
Mallya’s Legal Battle Continues
The case involves multiple nationalized and private banks, including State Bank of India (SBI), Punjab National Bank (PNB), and an asset reconstruction company. Mallya fled to the United Kingdom in 2016 and remains wanted in India over loan defaults totaling thousands of crores.
With the Karnataka High Court now seized of the matter, the next hearing could provide further clarity on the status of Mallya’s debt and whether banks have indeed recovered more than they were owed.
