Fugitive businessman Vijay Mallya is calling for an independent, judge-led probe into what he claims are significant discrepancies between the amount of money he owes and the funds that the government and banks have recovered from him. Mallya is specifically highlighting a difference of approximately Rs 4,000 crore between the stated figures, seeking clarity and proper accounting of the recovered funds.
Mallya, who fled to the UK in March 2016 and faces charges in India for defaulting on loans totaling around Rs 9,000 crore, insists that the Enforcement Directorate (ED) and banks have recovered an amount exceeding twice the actual debt he owed. He points to a statement made by Finance Minister Nirmala Sitharaman in Parliament, which indicated that over Rs 14,130 crore had been recovered from his attached assets. Mallya argues that the Debt Recovery Tribunal had determined the Kingfisher Airlines (KFA) debt to be Rs 6,203 crore, including Rs 1,200 crore in interest.
Taking to social media platform X, Mallya stated, "The FM announced in Parliament that through the ED, Banks have recovered Rs 14,131.60 crores from me against the judgement debt of Rs 6,203 crores and I am still an economic offender". He is questioning the legality of the debt recovery, challenging the ED and banks to justify how they recovered more than two times the debt. Unless a valid explanation is provided, Mallya believes he is entitled to relief, which he intends to pursue.
Mallya's claims have prompted reactions in the Indian legal system. Earlier this year, the Karnataka High Court issued a notice to banks, seeking a statement detailing the total amount recovered from Mallya and associated entities. The court’s directive followed a petition filed by Mallya, in which his counsel argued that despite the winding-up order against Kingfisher Airlines and its holding company, United Breweries Holdings Limited (UBHL), recovery proceedings against Mallya were still ongoing. Mallya's counsel claimed that recoveries since 2017 had already exceeded the Rs 6,200 crore owed, citing figures from various sources, including the Finance Minister's statements in Parliament.
Mallya's petition does not dispute the loan repayment itself. Instead, it argues that under the Companies Act, once the debt is settled, UBHL should no longer be liable and can seek revival. Mallya's plea urges banks to provide a detailed statement of the recovered amounts, the original owners of assets used for recovery, and a record of any remaining assets still held by banks.
The situation remains complex, with Mallya facing ongoing extradition efforts by the Indian government. He is accused of financial irregularities related to loans provided to his now-defunct Kingfisher Airlines. The Indian government has been actively pursuing economic offenders who have fled the country, with the ED working to recover funds and return them to the banks. As of today, fifteen individuals, including Vijay Mallya and Nirav Modi, have been declared Fugitive Economic Offenders, collectively owing over Rs 58,000 crore to banks.
