Vijay Mallya moves HC, says 'banks recovering debt multiple times'
What's the story
Fugitive businessman Vijay Mallya has approached the Karnataka High Court, challenging the ongoing debt recovery proceedings against him.
In his petition, Mallya claims that banks have already recovered the principal debt amount "multiple times over" in the Kingfisher Airlines loan default case.
He is now looking for a detailed account statement from these banks about the amounts they have recovered so far.
Legal proceedings
High court issues notices to banks, recovery official
Justice R Devdas of the Karnataka High Court has sent notices to 10 banks involved in the debt recovery process.
These include major institutions like the State Bank of India and Punjab National Bank.
A recovery official and an asset reconstruction company have also been served notices by Justice Devdas.
Debt dispute
Mallya's advocate claims over-recovery of debt
Mallya's senior advocate, Sajan Poovayya, has claimed that while Kingfisher Airlines owed around ₹6,200 crore, banks have already recovered ₹14,000 crore.
Poovayya cited the finance minister's statements in the Lok Sabha and a loan recovery officer to back this.
"The Finance Minister informed the Lok Sabha about this, while the loan recovery officer mentioned that ₹10,200 crore had been recovered," he said.
Recovery halt
Mallya seeks interim stay, statement of amounts owed
Now, Mallya is seeking an interim stay on further recovery actions by the banks.
He is also seeking a statement of all amounts owed by him and United Breweries Holdings Limited (UBHL), Kingfisher Airlines's holding company.
In December last year, Mallya claimed in a social media post that banks had recovered over twice the ₹ 6,203 crore amount adjudicated by the amount Recovery Tribunal, including interest.
Legal woes
Mallya's ongoing legal troubles and extradition efforts
Mallya, who fled India in 2016 and has been living in the United Kingdom since, is accused of fraud and money laundering. He reportedly owes Indian banks around ₹9,000 crore.
The CBI has named him as an accused in the IDBI Bank-Kingfisher Airlines loan fraud case.
Currently, efforts are underway to extradite him back to India for trial.