Vijay Mallya Challenges Debt Recovery, Seeks Clarity on Over Rs 14,000 Crore Recovered
Vijay Mallya has approached the Karnataka High Court, challenging the ongoing debt recovery proceedings against him.
NEW DELHI: Fugitive businessman Vijay Mallya has approached the Karnataka High Court, challenging the ongoing debt recovery proceedings against him. In his petition, Mallya is requesting a statement from the banks about the amounts owed by him, United Breweries Holdings Limited (UBHL), and other certificate debtors.
Table of Contents
The petition was filed after Mallya’s advocate, Sajan Poovayya, argued that the winding-up order against Kingfisher Airlines and its holding company, UBHL, had attained finality. Poovayya further pointed out that, despite the amounts due already being recovered, additional recovery proceedings were still being carried out against Mallya.
Debt Recovery Order and Status of Funds
The petition highlights that a debt recovery order had been issued for a sum of Rs 6,200 crore, to be paid by Kingfisher Airlines (the primary debtor) and UBHL (the guarantor). Poovayya stressed that this order had attained finality. According to the petition, Rs 6,200 crore has been recovered multiple times since 2017, with the recovery officer now indicating that a total of Rs 10,200 crore has been recovered. Furthermore, the finance minister had stated in Parliament that Rs 14,000 crore has been recovered as part of this process.
Also Read: Hyderabad: Hydraa Removes Encroachments on Roads, Frees 1200 Sq Yards of Land
Request for Transparency in the Recovery Process
Mallya‘s petition also demands more transparency in the recovery proceedings, asking for a statement from the banks regarding the amounts realized in their favor and the original owners of the assets used to recover the funds. He also seeks clarity on the assets owned by him, UBHL, or third parties, that are still available with the banks but have not yet been utilized to settle the alleged debt.
Mallya’s Background and Ongoing Legal Battle
Mallya, who fled India in 2016, faces charges of fraud and money laundering, with Indian banks claiming he owes them approximately Rs 9,000 crore. He has been residing in the UK since his departure. Despite his fugitive status, the Enforcement Directorate (ED) has reportedly recovered over Rs 22,000 crore from various scams, including the sale of Mallya’s assets, leading to more than Rs 14,000 crore being returned to the banks.
Next Steps in the Legal Process
Justice R Devdas issued a notice to the banks in response to Mallya’s petition. The ongoing legal proceedings will likely provide further insights into the recovery process and the status of the assets involved in the case. The court’s decision may offer more clarity on the final amounts recovered and the future course of action in Mallya’s debt recovery dispute.
