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Vijay Mallya’s lawyer claimed that banks had already recovered around Rs 15,000 crore from Mallya, against the original claimed dues of Rs 6,203.35 crore plus interest.
Bombay HC On Vijay Mallya Case As Lawyer Claims Banks Recovered ₹15,000 Crore
The Bombay High Court on Wednesday said the long-running dispute over recovery of dues from Vijay Mallya needs to “be brought to an end”, after his lawyer told the court that a 2020 petition challenging asset seizures had become redundant following developments over the past six years.
Mallya’s petition had challenged an order of a special Prevention of Money Laundering Act (PMLA) court allowing a consortium of lender banks led by the State Bank of India (SBI) to use assets confiscated by the Enforcement Directorate (ED) to recover his unpaid dues.
Mallya Says Petition No Longer Survives
Senior advocate Amit Desai, appearing for Mallya, said the petition was filed in 2020 when settlement talks were underway and sought protection for specific assets.
However, Desai said the application no longer survived as most of the assets referred to in the petition had already been attached and dealt with.
The bench appeared to agree with the argument. Justice Jadhav said the issue “needs to be put to an end” and that the idea was to “move on”, adding that otherwise relations and the economy of the country suffer.
The court directed the ED to file an affidavit clarifying whether the settlement process had concluded and whether “everything is done and dusted”.
The court also made it clear that this would not affect the criminal prosecution against Mallya, which must still be “taken to its logical end”.
The High Court said it would decide the next course of action after hearing the concerned ED deputy director.
Mallya: Banks Recovered Rs 15,000 Crore
Desai argued that Mallya’s civil liabilities were now over and said it was unfortunate that public sector banks were keeping the matter pending.
He claimed that banks had already recovered around Rs 15,000 crore from Mallya, against the original claimed dues of Rs 6,203.35 crore plus interest.
Desai also referred to an RBI audit, saying it described the matter as an airline’s business failure and “nothing else”.
“Banks have taken away Rs 15,000 crore and now they say sorry. That’s not good enough,” he said.
ED Allowed Sale Of Confiscated Assets
In February 2019, the ED told the special PMLA court that it had no objection to the SBI-led consortium liquidating Mallya’s confiscated assets to recover the debts.
Mallya had been declared a fugitive economic offender in January 2019.
Mallya’s Cases And Extradition Battle
Mallya faces several legal cases in India linked to alleged loan defaults, fraud, money laundering and financial irregularities concerning those loans.
In July 2015, the CBI’s Banking Securities & Fraud Cell registered an FIR against him over alleged irregularities in loans taken by Kingfisher Airlines from a consortium of banks led by IDBI Bank. He was charged with criminal conspiracy, criminal breach of trust and criminal misconduct.
Mallya left India in March 2016 amid mounting legal pressure and has remained in the United Kingdom since then, resisting extradition to India to face criminal charges.
After the FEO Act was enacted in 2018, proceedings were initiated against him under the law, prompting his petition before the High Court.
Although UK courts have approved his extradition to India, Mallya has used what has been described as a “confidential legal matter” to remain in the UK. This is widely understood to mean an application for political asylum.
About the Author
Shuddhanta Patra is an Indian journalist with about nine years of experience in covering national politics, geopolitics, defence, diplomacy and international affairs. Her reporting focuses on South As…Read More
August 12, 2026, 10:39 PM IST
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