Mallya Challenges Banks Over Allegedly Exceeding Loan Recovery

Vijay Mallya files a petition in Karnataka High Court, claiming banks over-recovered Rs 14,000 crore against an agreed Rs 6,200 crore loan repayment. His counsel demands banks disclose loan recovery details, as Mallya challenges legal justification over excessive recovery. High Court issues notice to involved banks and officers.

Vijay Mallya, the fugitive businessman currently residing in London, has approached the Karnataka High Court, seeking a disclosure of loan recovery details from banks. Senior advocate Sajan Poovayya is representing Mallya in this case. Mallya accuses banks of recovering Rs 14,000 crore, despite the repayment agreement being set at Rs 6,200 crore. His counsel informed that this discrepancy was highlighted by the Finance Minister in the Lok Sabha.

Arguing that a loan recovery officer confirmed a recovery of Rs 10,200 crore, Mallya's counsel insists that the full loan amount has been repaid, yet the recovery process persists. Consequently, he is requesting the courts to direct banks to provide a complete statement of the recovered loan amount. Justice R Devadas, leading a High Court bench, issued notices to the concerned banks and their loan recovery officers following Mallya’s petition.

Amid ongoing extradition efforts by India for alleged loan defaults, Mallya publicly stated on December 18, 2024, that banks have recouped Rs 14,131.60 crore from him, despite the Debt Recovery Tribunal fixing Kingfisher Airlines' debt at Rs 6,203 crore, inclusive of interest. Mallya declares his entitlement to relief unless the Enforcement Directorate (ED) and banks can justify the double recovery.

In a social media post, Mallya emphasized the need for the ED and banks to legally substantiate their actions, considering the recovery exceeds twice the owed amount. Previously, Finance Minister Nirmala Sitharaman revealed in Parliament that properties worth around Rs 22,280 crore were restored by the central enforcement agency, including Rs 14,131.6 crore from Mallya to public sector banks, highlighting the success in major economic offence cases.