Bombay HC Says Vijay Mallya Dues Dispute ‘Needs To Be Put To An End’

The Bombay High Court on Wednesday said the long-running dispute over the recovery of dues from fugitive businessman Vijay Mallya “needs to be put to an end” after his lawyer told the court that a 2020 petition challenging asset seizures had become redundant following developments over the past six years.

Mallya’s 2020 Petition

Mallya’s original petition challenged an order of a special Prevention of Money Laundering Act (PMLA) court allowing a consortium of lender banks led by the State Bank of India (SBI) to use assets confiscated by the Enforcement Directorate (ED) to recover his unpaid dues.

Senior advocate Amit Desai, appearing for Mallya, said the petition had been filed when settlement discussions were under way and sought protection for certain assets.

He told the court that the petition no longer survived as most of the assets referred to in it had since been attached and dealt with.

‘Issue Needs To Be Put To An End’: HC

The bench appeared to agree with the submission.

“Actually, this issue needs to be put to an end. The idea is to move on… otherwise the relations and the economy of the country suffer,” Justice Jadhav observed.

The court directed the ED to file an affidavit clarifying whether the settlement process had concluded and whether “everything is done and dusted”.

The court, however, made it clear that the development would have no bearing on the criminal proceedings against Mallya, which must still be taken to their “logical end”.

The high court will decide the next course of action after hearing the concerned ED deputy director.

Mallya Claims Banks Recovered ₹15,000 Crore

Desai argued that Mallya’s civil liabilities had effectively been settled and criticised public sector banks for continuing to pursue the matter.

He claimed that banks had already recovered around ₹15,000 crore, compared with the original claimed dues of ₹6,203.35 crore plus interest.

Desai also referred to an RBI audit, arguing that it characterised the matter as an airline business failure rather than something more.

ED Had Cleared Asset Liquidation

In February 2019, the ED told the special PMLA court that it had no objection to the SBI-led consortium liquidating Mallya’s confiscated assets to recover the outstanding debts.

Mallya was declared a fugitive economic offender in January 2019.

Mallya’s Legal Battle And Extradition

Mallya has been facing multiple cases in India relating to alleged loan defaults, fraud, money laundering and financial irregularities linked to loans taken by Kingfisher Airlines.

The CBI registered an FIR against him in July 2015 over alleged irregularities in loans obtained by Kingfisher Airlines from a consortium of banks led by IDBI Bank. He was charged with offences including criminal conspiracy, criminal breach of trust and criminal misconduct.

Mallya left India in March 2016 and has remained in the United Kingdom while resisting extradition to India to face the criminal cases.

Following the enactment of the Fugitive Economic Offenders Act in 2018, proceedings were initiated against him under the law. UK courts have approved his extradition, although the process has not resulted in his return to India.