The counsel appearing for Mr. Mallya has contended that even though the amount due to the banks has been already recovered, additional recovery proceedings were still being carried out against Mallya.
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The High Court of Karnataka on Wednesday (February 5, 2025) ordered issue of notice to the debt recovery officer and 10 banks on a petition filed by fugitive businessman Vijay Mallya seeking directions to the banks to provide statement of accounts for the total amount, along with accrued interest, owed by him, the United Breweries Holdings Ltd., (UBHL) and other certificate debtors, and the amount recovered so far in the process of recovery of debts of erstwhile Kingfisher Airlines Ltd.
Justice R. Devdas, before whom the petition came up for hearing, has adjourned further hearing till February 19.
Senior Advocate Sajan Poovayya, appearing for Mr. Mallya, has contended that even though the amount due to the banks has been already recovered, additional recovery proceedings were still being carried out against Mallya.
Winding up orders
Pointing out that the winding up order against Kingfisher Airlines and its holding company UBHL (which is under liquidation) as well as the parallel process for debt recovery for a sum of ₹6,200 crore from primary debtor Kingfisher and its guarantor, UBHL, has attained finality in law, Mr. Poovayya contended that debt has been recovered multiple times since 2017.
Claiming that the official liquidator has stated that the banks have received their money from liquidation process and the debt recover officer has said that ₹10,200 crore has been recovered, it was contended on behalf of Mr. Mallya that the debt due to the bank appear to be recovered multiple times from the guarantors, which includes Mr. Mallya.
The Court was also informed about the statement of Union Finance Minister Nirmala Sitharaman made in the Lok Sabha recently that ₹14,131.6 crore has been recovered by public sector banks (PSBs) from the sale of assets belonging to Mr. Mallya.
The statement of amounts realised by the banks and details of the original owners of the assets utilised for realising the amounts following amended recovery certificate issued on April 10, 2017, by the Debt Recovery Tribunal, Bengaluru, has also been sought by Mr. Mallya in his petition.
Not yet utilised
Also, a statement of assets owned by Mr. Mallya, UBHL, and third parties available with the banks, debt recovery officers and the financial reconstruction companies but not yet utilised for the purpose of satisfying the alleged debt owed under the recovery certificate has been sought in the petition.
Mr. Mallya has also sought a direction to the debt recovery officer to apply the recoveries made by the sale of all assets restored to the banks under the order passed in May and June 2021 by the Special Court for CBI cases, Greater Mumbai, in two cases registered against him under the provisions of the Prevention of Money Laundering Act.
Published – February 05, 2025 05:55 pm IST
