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Fugitive businessman Vijay Mallya has approached the Karnataka High Court with a plea challenging the recovery of loans by Indian banks, claiming they have collected more than double the amount owed. Mallya, who is currently residing in London, is contesting the recovery of ₹14,000 crore by banks, despite his debt originally amounting to ₹6,200 crore.
Representing Mallya, senior advocate Sajan Poovayya argued that the loan was fully repaid by the banks, yet recovery efforts continued. The legal counsel cited statements by Finance Minister Nirmala Sitharaman in the Lok Sabha, which indicated that the debt had been cleared, but the banks were still collecting payments. Mallya’s legal team requested the Karnataka High Court to issue a directive for banks to provide a statement detailing the total amount recovered, especially in light of claims made by the Finance Minister regarding the transfer of ₹14,131.60 crore to public sector banks.
The Karnataka High Court bench, led by Justice R Devadas, issued notices to the banks and loan recovery officers after Mallya’s petition was reviewed. The case adds another layer to the ongoing legal battles surrounding Mallya’s financial dealings, with Indian authorities seeking his extradition over alleged loan defaults.
In December 2024, Mallya publicly stated on social media that the banks had already recovered ₹14,131.60 crore from him, against the ₹6,203 crore owed, and raised questions about the legality of this excess recovery. The Enforcement Directorate (ED), which has been involved in the investigation, confirmed that the assets worth ₹14,131.60 crore were handed over to public sector banks.
Despite the funds being transferred to the banks, Mallya maintains that the recovery surpasses the original debt, which includes ₹1,200 crore in interest. He has called for justification from the authorities, claiming that unless they can provide proof of the legality of these excess recoveries, he has grounds for legal recourse.
This development in the Karnataka High Court further intensifies the long-running dispute between Vijay Mallya and Indian financial institutions, as he continues to contest his status as an economic offender.
Sources By Agencies
