Banks recovered far more money than Rs 6,200 crore debt: Vijay Mallya

Bengaluru: The High Court of Karnataka on Wednesday ordered issuing a notice to the Recovery Officer of Debt Recovery Tribunal (DRT), Chennai, in connection with a petition filed by liquor baron Vijay Mallya.

The fugitive businessman claimed that banks had recovered money multiple times against the principal debt of Rs 6,200 crore owed by his company Kingfisher Airlines Limited.

Justice R Devdas also ordered notices to lender banks, led by the State Bank of India, Bank of Baroda and others, and adjourned the hearing until February 19, 2025.

Amended recovery certificate

Mallya urged the court to direct the banks to provide him about amounts realised by or in their favour and the details of original owners of the assets utilised for realising the amounts in terms of the amended recovery certificate issued by the DRT on April 10, 2017.

He also sought a statement of assets owned by the guarantor company, United Breweries Holdings Limited (UBHL), or third parties, which are available with banks but not yet utilised for satisfying the alleged debt owed under the amended recovery certificate.

At the hearing, senior advocate Sajan Poovayya, appearing for Mallya, informed the court that the due amount had been recovered after the winding up order, against Kingfisher Airlines and its holding company UBHL, was upheld and attained finality with the Supreme Court confirming.

Additional recovery proceedings

The advocate submitted that the additional recovery proceedings are being carried out even though the amount due to the banks has been recovered. He further said that as against Rs 6,200-crore debt, the recovery officer stated to have recovered Rs 10,200 crore. He said that on the one hand, the official liquidator said that the banks had made their money restored, on the other the Union Finance Minister made a statement in Parliament that Rs 14,000 crore had been recovered.

"The petition is filed not to indicate that loan amounts should not be paid, but under the Companies Act, if the debt is fully paid, the guarantor company (UBHL) has no liability, and it can be revived, and for that, an application can be made for revival. That can happen only after the recovery officer issues a certificate saying that the debt has been recovered. To date, the amount continues and recoveries continue and no order has been passed to say whether the primary debt is paid or not," the advocate said.