Fugitive businessman Vijay Mallya, who has been living in the UK since 2016, has once again sparked a storm. In a recent social media post, Mallya claimed that Indian banks have already recovered more than twice the amount he was supposed to repay. While he is still tagged as an “economic offender,” he now questions whether this label is fair any more.
According to him, banks have already recouped ₹14,131.6 crore from him—more than double the ₹6,203 crore that the Debt Recovery Tribunal (DRT) ordered him to pay in 2017. So, is Mallya just playing the victim here, or is there more to the story than what meets the eye?
The Big Claim: Mallya’s Defence
In a series of posts on the social media platform X, Vijay Mallya wrote, “The FM announced in Parliament that through the ED, banks have recovered ₹14,131.6 crore from me against the judgment debt of ₹6,203 crore, and I am still an economic offender… Unless the ED and banks can legally justify how they have taken more than two times the debt, I am entitled to relief, which I will pursue.”
According to Mallya, this recovery includes both the loan amount and interest, and hence, he should no longer be treated as a defaulter. He also claimed he never borrowed money for personal use and called himself a victim of injustice. “Will anyone, including those who freely abuse me, stand up and question this blatant injustice?” he asked, hinting at a possible legal challenge to clear his name in the UK.
What the Government Says: Nirmala Sitharaman’s Response
Finance Minister Nirmala Sitharaman confirmed in Parliament that properties worth ₹14,131.6 crore belonging to Mallya were returned to public sector banks. This recovery was made under the action taken by the Enforcement Directorate (ED) in high-profile cases involving fugitive economic offenders.
Speaking during the Supplementary Demands for Grants debate, she said, “Properties worth ₹14,131.6 crore have been restored to banks in Mallya’s case alone. Overall, assets worth ₹22,280 crore have been restored in major cases.”
This aligns with the 2024–25 Finance Ministry’s Annual Report, which states that Mallya is one of 11 individuals whose assets were seized and sold to recover dues from wilful defaulters.
Also Read: Mallya Arrested And Out On Bail, But Will He Return The Money: Demystifier
How Much Did Mallya Actually Owe?
Back in 2017, the Bengaluru bench of the Debt Recovery Tribunal (DRT) directed a group of banks, led by the State Bank of India (SBI), to recover ₹6,203 crore from Mallya and his companies. This amount included the principal loan amount plus ₹1,200 crore in interest.
However, the total loan amount defaulted by Kingfisher Airlines was around ₹9,000 crore, according to government statements. This includes additional interest and penalties that accumulated over time and multiple cases filed by the banks to recover their dues.
So, while the DRT adjudged the amount as ₹6,203 crore, the banks were technically chasing a much bigger figure due to additional interest and legal costs that continued to mount.
What’s Happening In The UK Courts?
Currently, Mallya is fighting a bankruptcy case in the UK where the same figures are now central to the argument. Mallya hopes that this alleged “over-recovery” will help him cancel the bankruptcy proceedings.
“Finally, against a DRT judgement debt of ₹6,203 crore, the admitted recovery of ₹14,131.8 crore will be evidence in my UK bankruptcy annulment application. I wonder what the banks will say in an English court,” Mallya posted.
This could be a strategic move, as his extradition to India, approved by the UK High Court in April 2020, has been held up for over two and a half years. The ED claims significant progress in high-profile extradition cases, but Mallya continues to dodge deportation through appeals and technical loopholes.
So, Who’s Telling The Truth?
Technically, both sides have some truth. Mallya is right that ₹14,131.6 crore has been recovered. But it’s not as simple as the debt being ₹6,203 crore and the rest being “extra.” Government sources say the ₹6,203 crore was the DRT figure—essentially a legal recognition of a certain part of the debt, not the full amount owed, which includes around ₹9,000 crore loan default, interest, legal costs, and penalties.
So, the banks and ED argue that they’re just recovering long-overdue public money. Mallya, on the other hand, insists that this is double-dipping and unfair. But until a court (perhaps in the UK) says otherwise, he remains a declared fugitive and a wilful defaulter.
A Long Road To Closure
The Vijay Mallya case is no longer just about numbers. It’s about legal technicalities, public perception, and international diplomacy. Yes, banks may have recovered more than the DRT judgement, but that doesn’t automatically mean Mallya is off the hook. The full debt, including penalties and accumulated interest, may justify this recovery.
So, is he right to feel wronged? Maybe. Is he off the hook? Not yet. As both Indian and British courts continue to untangle this financial knot, one thing is certain—this case is far from over.
Sources: Hindustan Times, Live Mint, Economic Times
Find the blogger: Katyayani Joshi
This post is tagged under: Vijay Mallya, Economic Offender, Bank Loan Scam, Kingfisher Airlines, Indian Economy, Loan Defaulters, Fugitive Economic Offenders, Enforcement Directorate, Financial Scams India, UK Extradition Case, Finance Ministry India, Nirmala Sitharaman, Bankruptcy Case UK, Banking Fraud India, Public Sector Banks, Corporate Scams India, Debt Recovery Tribunal, Asset Recovery, Indian Legal News, High Profile Scams
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