Mallya Challenges Debt Recovery as Banks Reclaim Double Amount

Fugitive businessman Vijay Mallya claims banks have recovered over twice the amount of his judgment debt, insisting he's still labeled as an economic offender without legal justification. Mallya plans to pursue relief as government highlights recovery efforts from significant economic offenders, including Modi and Choksi, impacting financial growth.

Fugitive businessman Vijay Mallya alleged on Wednesday that banks have recovered Rs 14,131.60 crore from him, which is over double the judgment debt of Rs 6,203 crore. He stated in a post on X that he remains labeled as an 'economic offender', questioning the lack of legal explanation from the Enforcement Directorate (ED) and banks regarding the excess recovery.

According to Mallya, the Debt Recovery Tribunal had adjudged the Kingfisher Airlines (KFA) debt at Rs 6,203 crore, encompassing Rs 1,200 crore in interest. Finance Minister Nirmala Sitharaman informed Parliament that through the ED's actions, public sector banks have recovered the full amount. Despite this, Mallya asserted his entitlement to relief, which he intends to pursue further.

While addressing the Supplementary Demands for Grants in the Lok Sabha, Sitharaman highlighted the ED's successful retrieval efforts, which include properties of Mallya among others. Her claims underscore the government's stringent measures against economic offences, asserting that recovered funds are being redirected to banks to stimulate economic growth.

(With inputs from agencies.)