Banks recovered more than owed, claims Mallya in HC petition

Bengaluru: Fugitive businessman Vijay Mallya has filed a writ petition in the Karnataka High Court seeking clarity on the assets seized by banks and the outstanding debt linked to his loan default.

The petition, heard on Tuesday, requests a comprehensive statement of recoveries made by the banks and argues that interest should no longer be charged on amounts already recovered. Mallya’s counsel, senior advocate Sajan Poovayya, contended that over ₹10,000 crore had been recovered through proceedings under the Prevention of Money Laundering Act (PMLA), exceeding the certified recovery amount of ₹6,203 crore plus 11.5% interest.

Referencing a July 2021 Enforcement Directorate statement, Poovayya noted that ₹7,181 crore had been recovered at that time, with the total now reportedly reaching ₹10,040 crore. He further cited the official liquidator’s submission that the consortium of banks had recovered more than the amount due.

Presiding over the single-judge bench, Justice Lalitha Kanneganti questioned the appropriateness of filing a writ petition for financial disclosures, suggesting the company court may be the proper forum. She also raised concerns over Mallya’s repeated non-appearance in court proceedings, including a contempt case before the Supreme Court.

In response, Poovayya asserted Mallya’s constitutional right to file a writ petition. Representing the banks, senior advocate Vikram Huilgol argued that Mallya’s fugitive status undermines his claims, stating that he engages with the legal system only when convenient.

The court directed the banks to file their objections and adjourned the matter to 12 November.

(Inputs from IANS)