Fugitive businessman Vijay Mallya has reignited the controversy surrounding his loan default by claiming that Indian public sector banks have already recovered more than double the amount he owed. Referring to the latest Finance Ministry report (2024–25), Mallya said that banks have received Rs 14,131.8 crore, far more than the Rs 6,203 crore he was ordered to repay.
Mallya’s Claim on X
In a recent post on social media platform X, Mallya wrote:
“As per the Debt Recovery Tribunal ruling, Rs 14,131.8 crore has been recovered against Rs 6,203 crore. This is also part of my bankruptcy revocation application in the UK. I wonder what the banks will now say in the UK court.”
What the Government Report Says
The Finance Ministry’s annual report details that:
- A total of Rs 14,131.6 crore worth of assets linked to Mallya have been handed over to public sector banks.
- This recovery was made through actions by the Enforcement Directorate (ED).
- The ED also played a major role in pushing extradition proceedings against Mallya and 10 other fugitive economic offenders.
- So far, 44 extradition requests have been issued to various countries for 36 individuals.
Background of the Case
- In 2017, the Debt Recovery Tribunal in Bengaluru had allowed a consortium of banks led by SBI to recover Rs 6,203 crore at an annual interest rate of 11.5% from Mallya and his companies.
- Mallya fled to the UK in March 2016 and has been fighting extradition ever since.
- He is accused of defaulting on loans worth Rs 9,000 crore taken by his now-defunct Kingfisher Airlines.
Mallya’s Defense
Mallya insists he had offered to repay 100% of the loan amount earlier, but claims that the banks and the government rejected the proposal. His latest statements are seen as an attempt to strengthen his case in the UK court, where his bankruptcy proceedings are ongoing.
