Vijay Mallya Moves K’taka HC, Seeks Loan Recovery Accounts From Banks

Fugitive businessman Vijay Mallya has recently filed a petition in the Karnataka High Court, seeking details on loan recoveries made by banks.

The case was presented before a bench led by Justice R Devadas, with senior advocate Sajan Poovayya representing Mallya in court.

Mallya’s Claims on Loan Repayments

According to Mallya’s counsel, while the original loan amount stood at ₹6,200 crore, banks have recovered ₹14,000 crore an amount significantly exceeding the debt. The counsel referenced a statement made in the Lok Sabha by Finance Minister Nirmala Sitharaman, affirming the recovery figures.

Mallya’s legal team further argued that loan recovery officers themselves reported ₹10,200 crore as recovered, yet the process continues despite the debt being cleared. As a result, Mallya has requested the court to direct banks to provide a transparent statement detailing the total recovered loan amount.

High Court Issues Notice to Banks

Following Mallya’s petition, the Karnataka High Court issued notices to both banks and loan recovery officers, seeking their response.

Mallya, who remains in London, is facing extradition efforts by the Indian government over alleged loan defaults related to Kingfisher Airlines.

Mallya’s Public Statement on Loan Recovery

Earlier, on December 18, 2024, Mallya claimed that banks had recovered ₹14,131.60 crore, more than twice the adjudged loan debt of ₹6,203 crore, yet he continues to be labeled an economic offender.

Taking to X (formerly Twitter), he questioned the legal basis of the excess recovery, stating:

“The Debt Recovery Tribunal adjudged the KFA (Kingfisher Airlines) debt at ₹6,203 crore, including ₹1,200 crore of interest. The Finance Minister announced in Parliament that through the ED, banks have recovered ₹14,131.60 crore from me. I am still an economic offender. 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 Loan Recoveries

During a parliamentary session on Supplementary Demands for Grants (First Batch for 2024-2025), Finance Minister Nirmala Sitharaman highlighted major cases where the Enforcement Directorate (ED) has seized and restored assets from economic offenders.

She informed the Lok Sabha that the ED has restored assets worth ₹22,280 crore, including properties valued at ₹14,131.60 crore, which were seized from Mallya and transferred to public sector banks.

The legal battle over the alleged excess recovery now moves to the Karnataka High Court, where Mallya seeks clarity and possible relief.

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