Vijay Mallya, the embattled businessman currently residing in the UK, has renewed his criticism of Indian banks, asserting that they have not provided an accurate account of the recoveries made from his assets. Mallya, who is wanted in India on charges of fraud and money laundering, claims that banks have recovered over ₹14,100 crore, an amount he insists is more than twice the debt he owed to public sector banks.
Mallya's claim is based on details from the Finance Ministry's annual report for 2024-25, which he says shows that banks have recovered ₹14,131.8 crore against a ₹6,203 crore judgment debt awarded by the Debt Recovery Tribunal (DRT). He has voiced his surprise that despite these recoveries, he is still labeled an "economic offender".
In a statement, Mallya questioned the banks' justification for taking "more than two times the debt," stating that he is "entitled to relief" and intends to pursue it. He has also expressed his frustration with the lack of transparency from the banks, claiming they have not provided a statement of accounts despite multiple reminders from his lawyers and a personal letter to the State Bank of India (SBI) chairman. Mallya even approached the Karnataka High Court on February 5, 2025, seeking clarification on the loan recovery process, emphasizing that the banks have already recovered ₹14,000 crore.
The situation is further complicated by Mallya's ongoing legal battles in the UK. He recently discontinued an application to annul a UK bankruptcy order ahead of a planned hearing in London. This allows the "Trustee in Bankruptcy" to continue pursuing assets to help a consortium of banks, led by SBI, recover an estimated £1.05 billion. The banks were granted a worldwide freezing order in May 2018, and a bankruptcy order against Mallya was issued on July 26, 2021.
Mallya remains on bail in the UK while a confidential legal matter, believed to be related to an asylum application, is resolved. Meanwhile, the Indian government is actively pursuing his extradition, along with other fugitives like Lalit Modi and Nirav Modi.
Finance Minister Nirmala Sitharaman has previously stated in Parliament that ₹14,131.6 crore worth of properties belonging to Mallya have been restored to public sector banks. She highlighted the government's commitment to pursuing economic offenders and recovering their assets. The Enforcement Directorate (ED) has played a key role in attaching and restoring these properties.
Mallya, however, continues to question the narrative surrounding his case. He argues that if he had indeed defrauded the banks, it would not have been possible for them to recover such a significant amount. He has called out what he describes as "false narratives" and claims that he has been unable to counter them until recently, as there was no official figure available.
The legal complexities surrounding Mallya's case continue to unfold in both India and the UK. While Indian banks have recovered a substantial amount through the ED, Mallya insists that he is entitled to relief, given the scale of the recoveries. His decision to discontinue the bankruptcy annulment application in the UK suggests a shift in his legal strategy, possibly linked to the ongoing dispute over the recovered amounts in India. The case remains a high-profile example of the challenges involved in pursuing economic offenders and recovering public funds.
