Karnataka High Court Issues Notice to Banks on Vijay Mallya’s Request for Debt Recovery Statement

Last Updated on February 7, 2025 by Shianjany Pradhan

On February 5, the Karnataka High Court sought responses from banks after a petition was filed by Vijay Mallya, who requested a statement detailing the amounts owed by him, United Breweries Holdings Limited (UBHL) (currently in liquidation), and other certificate debtors.

Justice R. Devdas issued the notice, requiring a reply by February 13.

Representing Mallya, Senior Advocate Sajan Poovayya argued that the liquidation orders for Kingfisher Airlines and its parent company UBHL had been upheld by the Supreme Court.

Despite the debt being recovered, additional proceedings were still being pursued against Mallya.

Poovayya pointed out that a debt recovery tribunal (DRT) had directed Kingfisher Airlines and its guarantor, UBHL, to pay ₹6,200 crore.

However, by 2017, the same amount had been collected multiple times, and according to the recovery officer, a total of ₹10,200 crore had been recovered.

He also noted that the Finance Minister had stated in Parliament that ₹14,000 crore had been recovered.

The petition does not dispute loan repayment but seeks UBHL’s revival under the Companies Act, which allows a guarantor company to resume operations if its liabilities have been cleared.

However recovery officer must certify that the debt has been fully paid.

Despite the excess recoveries, no such certification has been issued, and recovery actions continue.

The plea requests a detailed statement from banks outlining the amounts recovered and the original ownership of assets used for repayment as per the amended recovery certificate issued by the DRT on April 10, 2017.

It also seeks a list of assets belonging to Mallya, UBHL, or third parties that are still held by banks but have not been used to settle the alleged outstanding debt.

Additionally, the petition seeks an interim order to halt any further recovery actions, including the sale of Mallya’s assets, under the amended DRT recovery certificate.