Bengaluru: Fugitive businessman Vijay Mallya has informed the Karnataka High Court that the Rs 6,200 crore debt he owed to banks has been recovered multiple times over. He has sought a detailed statement of accounts reflecting the amounts recovered from him, United Breweries Holdings Limited (UBHL, now in liquidation), and other certificate debtors.
The High Court, on Wednesday, issued a notice to the banks in response to Mallya’s petition and directed them to submit their response by February 13. Justice R Devdas presided over the matter.
Representing Mallya, senior advocate Sajan Poovayya argued that the winding-up order against Kingfisher Airlines and its parent company, UBHL, had been upheld by all judicial forums, including the Supreme Court. Despite this, he contended that recovery proceedings against Mallya were still ongoing, even though the debts had already been settled.
Poovayya pointed out that a Debt Recovery Tribunal (DRT) had earlier ruled that Kingfisher Airlines, as the primary debtor, and UBHL, as its guarantor, were liable to pay Rs 6,200 crore to the banks. However, he claimed that the recoveries have far exceeded this amount.
“That order attained finality. However, between 2017 and now, the Rs 6,200 crore has been recovered multiple times over. According to an admitted statement, as of today, the recovery officer confirms that Rs 10,200 crore has been recovered. Additionally, the official liquidator states that the banks have regained their dues, and even the Finance Minister informed Parliament that Rs 14,000 crore has been recovered,” Poovayya stated.
Mallya’s legal team clarified that the petition does not challenge the repayment of loans but argues that under the Companies Act, once the debt is fully repaid, the guarantor company (UBHL) should no longer be held liable and should be eligible for revival.
The Karnataka High Court’s directive now requires banks to provide their response, which could shed light on the total amount recovered and the justification for any ongoing proceedings against Mallya and UBHL. The case is set for further hearing on February 13.
Mallya, who fled India in 2016 amid allegations of financial fraud, remains in the United Kingdom, where he has been fighting extradition to India on charges of money laundering and defaulting on loans.
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.
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