'Debt Has Been Recovered Multiple Times Over': Vijay Mallya Approaches Karnataka HC Seeking Information On Total Amount Recovered By Banks

The Karnataka High Court on Wednesday (February 5) issued notice to banks on a petition filed by fugitive liquor baron Vijay Mallya, seeking a direction to the former to provide a statement of accounts for the amounts owed by him, United Breweries Holdings Limited (in liquidation) and other certificate debtors.Justice R Devdas issued the notice returnable on February 13. Senior Advocate Sajan Poovayya appearing for petitioner submitted that winding up order against Kingfisher Airlines and holding company United Breweries Holdings Limited, (UBHL) attained finality and up to the Supreme Court the winding up has been confirmed. It was further submitted that the amount due had already been recovered, and even still additional recovery proceedings had been carried out against Mallya.Poovayya said, "Parallelly there was a debt recovery proceeding, in that a sum of Rs 6200 crore was ordered to be paid by the primary debtor Kingfisher and the UBHL which was the guarantor. That order also attained finality"."However, between 2017 the Rs 6200 crore was recovered multiple times over and there is an admitted statement which i have filed, as on date, the recovery officer says Rs 10,200 crore has been recovered. While the official liquidator says banks have made their money restored. Lastly a statement is made in the Parliament by the Finance Minister that 14,000 crore is recovered," he added. Poovayya further submitted that the petition is filed not to indicate that loan amounts should not be paid, but under the Companies Act, if the debt is fully paid the guarantor company (UBHL) has no liability, and it can be revived, and for that, an application can be made for revival. That can happen only after the recovery officer issues a certificate saying that the debt has been recovered. To date the amount continues and recoveries continue and no order has been passed to say whether the primary debt is paid or not.The plea prays for a statement to be issued by the banks of amounts realised by or in their favour and details of the original owners of the assets utilized for realising the amounts following the amended recovery certificate dated 10.04.2017, issued by the DRT. Further, a statement of assets owned by the petitioner, UBHL or third parties, and which are available with the banks but not yet utilized for the purpose of satisfying the alleged debt owed under the amended recovery certificate. The plea also by way of interim order prays for staying all further actions being undertaken by Banks pursuant to the amended recovery certificate dtd. 10.04.2017 issued by DRT, including further sales of the petitioner's assets lying with them. Case Title: Vijay Mallya AND Recovery Officer-II & OthersCase No: WP 3357/2025.

'Debt Has Been Recovered Multiple Times Over': Vijay Mallya Approaches Karnataka HC Seeking Information On Total Amount Recovered By Banks

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