New Delhi: Former chairman of Kingfisher Airlines and embattled business tycoon Vijay Mallya took to X (formerly Twitter) today to express his grievances regarding the ongoing recovery of his debts. In a detailed post, Mallya alleged that the Enforcement Directorate (ED) and banks have recovered more than double the adjudged debt amount, calling for clarity and legal justification.
Mallya, who has been embroiled in financial disputes since the collapse of Kingfisher Airlines, stated on X:
“The Debt Recovery Tribunal adjudged the KFA debt at Rs 6,203 crores, including Rs 1,200 crores of interest. The FM announced in Parliament that through the ED, Banks have recovered Rs 14,131.60 crores from me against the judgement debt of Rs 6,203 crores, 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.”
Background of the Case
The legal troubles for Vijay Mallya began after Kingfisher Airlines ceased operations in 2012, leaving behind unpaid loans amounting to thousands of crores of rupees to a consortium of banks. Declared a “willful defaulter,” Mallya fled to the UK in 2016. He was later declared a fugitive economic offender by Indian courts under the Fugitive Economic Offenders Act.
In Parliament earlier, the Finance Minister announced that Rs 14,131.60 crores had been recovered from Mallya’s assets, which included proceeds from the sale of properties and shares. This recovery far exceeds the original debt of Rs 6,203 crores as determined by the Debt Recovery Tribunal (DRT), Mallya said.
Legal experts suggest that the issue may lead to further litigation, as Mallya appears determined to contest the over-recovery claim. If proven correct, the situation could set a precedent for how debt recovery is handled in high-profile economic offenses.
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