Fugitive businessman Vijay Mallya has informed the Karnataka High Court that the debt he owes to banks has already been recovered “multiple times over” and has sought a statement of accounts detailing the amounts recovered from him, United Breweries Holdings Limited (UBHL, now in liquidation), and other certificate debtors. The court has issued a notice to banks in response to Mallya’s plea, asking them to submit their response by February 13.
Senior advocate Sajan Poovayya, representing Vijay Mallya, argued before Justice R. Devdas that the winding-up order against Kingfisher Airlines and its holding company, United Breweries Holdings Limited, had been upheld at all judicial levels, including the Supreme Court. He contended that despite the debts being fully recovered, additional recovery proceedings were still being pursued against Vijay Mallya, creating ambiguity over the financial obligations.
According to Sajan Poovayya, a debt recovery tribunal had originally ordered Kingfisher Airlines, as the primary debtor, and United Breweries Holdings Limited, as the guarantor, to pay ₹6,200 crore. However, he asserted that the amount has been recovered several times over. Citing records, he stated that as of now, the recovery officer has confirmed ₹10,200 crore has been recovered, and even the official liquidator has acknowledged that banks have regained their dues. Furthermore, Sajan Poovayya highlighted that Finance Minister Nirmala Sitharaman had informed Parliament that a total of ₹14,000 crore has been recovered.
Vijay Mallya’s petition does not dispute the repayment of loans but argues that under the Companies Act, once the debt has been fully repaid, the guarantor company, United Breweries Holdings Limited, no longer has any liability and should be allowed to seek revival. However, the process requires certification from the recovery officer confirming the complete settlement of the debt, which has not yet been issued. Without such certification, the recoveries continue, creating confusion over whether the primary debt has been entirely settled.
Vijay Mallya has requested the banks to provide a detailed statement of the amounts recovered in their favour and clarify the ownership of assets that were used for recovery following the amended recovery certificate issued by the debt recovery tribunal on April 10, 2017. Additionally, the plea seeks a record of any remaining assets belonging to Vijay Mallya, United Breweries Holdings Limited, or third parties that banks have yet to utilize for loan recovery.
As an interim measure, Vijay Mallya’s petition has also sought a stay on any further asset sales by banks under the amended recovery certificate until complete clarity is provided regarding the settlement of the outstanding debt.
