Vijay Mallya Moves HC, Says ₹14,000 Cr Recovered from Me Instead of ₹6,200 Cr
Fugitive businessman Vijay Mallya has moved the Karnataka High Court challenging the debt recovery proceedings against him. Mallya, who has been accused of defaulting on a loan of around ₹6,200 crore from various banks, has claimed that the authorities have recovered the “principal debt amount multiple times over” from him.
Mallya’s counsel argued that the authorities have recovered a total of ₹14,000 crore from the businessman, which is significantly higher than the outstanding debt of ₹6,200 crore. The counsel claimed that the recovery amount includes interest and principal amount, which has been recovered from Mallya through various means, including the sale of his properties and assets.
The debt recovery proceedings against Mallya were initiated after Kingfisher Airlines, which he founded, defaulted on a loan of ₹6,200 crore from various banks, including State Bank of India, Bank of Baroda, Bank of India, and others. The banks had lent the money to Kingfisher Airlines for various purposes, including to meet its operational expenses and to expand its fleet.
Mallya, who has been living in the United Kingdom since 2016, has been accused of fleeing the country to avoid facing the consequences of his actions. The Enforcement Directorate (ED) had attached his properties and assets worth over ₹12,000 crore in 2017, which was later increased to ₹14,000 crore.
The ED had also alleged that Mallya had diverted a significant portion of the loan amount to his personal accounts and had used it to fund his lavish lifestyle. The agency had also alleged that Mallya had failed to provide adequate security for the loan and had not maintained the necessary accounts and records.
The Karnataka High Court has directed the authorities to produce the loan recovery accounts from the banks and to provide a detailed breakdown of the recovery amount. The court has also asked Mallya’s counsel to provide evidence to support their claim that ₹14,000 crore has been recovered from the businessman.
The development comes as a surprise to many, as Mallya has been accused of defaulting on his loan and has been evading the law for several years. The ED had also charged Mallya with money laundering and had attached his properties and assets worth over ₹12,000 crore.
However, Mallya’s counsel has claimed that the recovery amount includes interest and principal amount, which has been recovered from the businessman through various means, including the sale of his properties and assets. The counsel has also claimed that Mallya had provided adequate security for the loan and had maintained the necessary accounts and records.
The development has raised several questions, including whether Mallya’s claim of having recovered ₹14,000 crore is true and whether the authorities have made a mistake in initiating debt recovery proceedings against him. The case is likely to have a significant impact on the banking sector and could set a precedent for other defaulters.
In conclusion, the case of Vijay Mallya vs the authorities is a complex one, with both sides presenting their arguments and evidence. While Mallya’s counsel has claimed that ₹14,000 crore has been recovered from the businessman, the authorities have alleged that Mallya has defaulted on his loan and has failed to provide adequate security for the loan.
The Karnataka High Court’s direction to produce the loan recovery accounts from the banks and to provide a detailed breakdown of the recovery amount is a significant development in the case. The court’s decision is likely to have a significant impact on the banking sector and could set a precedent for other defaulters.
