Fugitive businessman Vijay Mallya's argument, 'The amount recovered by the banks is much more than the loan taken'

Fugitive businessman Vijay Mallya delivered a strong statement in the Karnataka High Court. On Wednesday, in court, the businessman alleged that much larger sums of money have been recovered by the banks in relation to the loan taken by him. There is a bank loan of Rs 6,200 crore taken in his name, but much larger sums have been recovered many times over. Information regarding recovered sums of money from him, United Breweries Holdings Ltd, and defaulters have been sought by him.

The fugitive businessman moved a petition in Karnataka High Court on February 3. In response, a notice to the banks was dispatched on Wednesday. Justice R. Devadas directed the banks to respond by February 13. The petition has sought a stay on any future bank sales of assets under the new certificate of recovery as an interim relief.

Senior advocate Sajan Poovayya, representing Vijay Mallya, argued that the liquidation order against Kingfisher Airlines and its holding company UBHL has been upheld at all judicial levels, including the Supreme Court. He said that the loan has already been recovered, yet additional recovery proceedings are going on against Mallya.

Poovayya told the court that the Debt Recovery Tribunal (DRT) had ordered Kingfisher Airlines as the main debtor and UBHL as the guarantor to pay Rs 6,200 crore. He said, 'That order has finally come into effect. However, many times more than Rs 6,200 crore has been recovered since 2017. According to an admitted statement, the recovery officer has confirmed that Rs 10,200 crore has been recovered to date. Further, the official liquidator has said that the banks have recovered their dues and even the finance minister had informed Parliament that Rs 14,000 crore has been recovered.'

The liquidator is the person who has the legal authority to act on behalf of the company before it is wound up.

He clarified that the petition does not dispute loan repayment but argues that under the Companies Act, once the loan is fully repaid, the guarantor company (UBHL) has no remaining liability, and revival can be sought. This process, however, requires a certification from the recovery officer confirming that the loan has been fully repaid, which has not been issued yet. Meanwhile, recovery is on, but it is not clear whether the primary loan has been fully repaid.

The petition has requested the banks to provide details of the amounts recovered in their favor after the revised recovery certificate issued by the DRT on April 10, 2017, as well as information about the original owners of the properties used for these recoveries. It has also sought a record of any property belonging to Vijay Mallya, UBHL, or third parties that is in the possession of the banks but has not yet been used for loan recovery.