Karnataka High Court Seeks Clarity on Vijay Mallya Case: Are Banks Over-Recovering?

The Karnataka High Court has issued a notice to banks following a petition from Vijay Mallya demanding a detailed account of recovered amounts post-liquidation of United Breweries Holdings Limited. Mallya's argument contends that debts have been repaid multiple times, yet additional recoveries continue without clear settlement confirmation.

The Karnataka High Court has prompted banks to clarify their financial dealings with fugitive liquor baron Vijay Mallya. This follows a petition filed by Mallya, requiring a full statement of accounts detailing recovery amounts from United Breweries Holdings Limited (UBHL) and other certificate debtors.

Mallya's senior counsel, Sajan Poovayya, highlights that despite the liquidation of Kingfisher Airlines and UBHL, recovery attempts continued, surpassing the required amounts. Poovayya noted the Supreme Court and other judicial levels upheld the winding-up order, yet continuous debt recoveries appear unwarranted as claims have been settled.

The court seeks assurance from banks that all debt recoveries align with legal obligations, and Mallya's petition requests an interim stay on further bank asset sales until the debt settlement is confirmed in adherence to the Companies Act.