Fugitive businessman Vijay Mallya, who has been embroiled in the Kingfisher Airlines (KFA) loan default case, has accused Indian banks and the Enforcement Directorate (ED) of recovering more than double the amount he owed. In a recent post on X (formerly Twitter), Mallya stated that while the Debt Recovery Tribunal (DRT) pegged his dues at ₹6,203 crore, banks and the ED have recovered ₹14,131.6 crore from him.
Mallya’s Allegations Against Banks and ED
In his post, Mallya highlighted the discrepancy, saying, “The Debt Recovery Tribunal had assessed the total dues of ₹6,203 crore, including ₹1,200 crore in interest. Now, the Finance Minister has informed Parliament that ₹14,131.6 crore has been recovered from me. Despite this, I am still labeled an economic offender.”
He further questioned the legality of the recovery, asserting, “If the ED and banks cannot justify why they recovered more than my outstanding dues, I should be granted relief. I will pursue legal recourse in this matter.”
Finance Minister’s Statement in Parliament
Mallya’s statement came shortly after Finance Minister Nirmala Sitharaman disclosed details of the recovery in Parliament. While responding to discussions on the Supplementary Demands for Grants for 2024-25, Sitharaman announced that ₹14,131.6 crore worth of Vijay Mallya’s assets had been returned to public sector banks.
The Finance Minister also provided updates on other high-profile cases:
- In the Nirav Modi case, ₹1,052.58 crore worth of assets were returned to public and private sector banks.
- For Mehul Choksi, ₹2,565.90 crore worth of properties have been seized and are awaiting auction.
- In the National Spot Exchange Limited (NSEL) fraud, ₹17.47 crore worth of properties have been distributed among affected investors.
The Case Against Vijay Mallya
Once dubbed the “King of Good Times,” Vijay Mallya is accused of defaulting on loans worth nearly ₹9,000 crore taken from Indian banks to finance the now-defunct Kingfisher Airlines. After leaving India in 2016, Mallya has been residing in the UK, where Indian authorities have been pushing for his extradition.
The ED has previously claimed that Mallya’s properties were seized and auctioned to recover dues. However, Mallya’s latest allegations add a new layer of complexity to the case, which continues to be litigated in Indian courts.
Potential Legal Implications
Mallya’s assertion of over-recovery by Indian authorities is likely to deepen the legal dispute surrounding his case. His demand for relief and the possibility of initiating legal proceedings against the ED and banks could bring new scrutiny to the recovery process.
Indian authorities have yet to officially respond to Mallya’s claims. However, the Finance Minister’s detailed disclosures in Parliament indicate that the government is actively addressing the financial mismanagement linked to economic offenders.
Background and Current Status
Vijay Mallya was once a prominent figure in Indian business, known for his flamboyant lifestyle and ownership of Kingfisher Airlines. However, financial troubles led to the airline’s collapse, leaving banks with unpaid loans.
Since fleeing to the UK, Mallya has fought multiple legal battles to resist extradition to India. While the UK courts approved his extradition in 2019, the process has been delayed due to undisclosed legal and procedural issues.