In a significant legal move, the Karnataka High Court on Wednesday responded to a plea by Vijay Mallya, the embattled businessman and fugitive liquor baron, by issuing a notice to several banks. The court’s action demands that these financial institutions provide details regarding the recoveries made from Mallya’s assets. The notice stems from a petition filed by Mallya on February 3, seeking a comprehensive statement of accounts to clarify the total amounts recovered from him and associated entities such as United Breweries Holdings Limited (UBHL), which is currently in liquidation.
Justice R Devdas has given the banks until February 13 to furnish a response. The case is underpinned by Senior Advocate Sajan Poovayya’s arguments, representing Mallya, who emphasized that despite the winding-up orders against Kingfisher Airlines and UBHL being upheld by the Supreme Court, questions remain regarding the continuation of recovery proceedings against Mallya.
Poovayya detailed to the court that a Debt Recovery Tribunal (DRT) had previously ordered Kingfisher Airlines and UBHL to pay Rs 6,200 crore, a sum which he claims has been “recovered multiple times over.” He presented data suggesting that as much as Rs 10,200 crore has already been recouped, citing an official statement by the recovery officer. Moreover, he referenced a statement made by the Finance Minister in Parliament indicating that up to Rs 14,000 crore has been collected.
The heart of the petition lies not in disputing the repayment of loans but in seeking official recognition that the debts have been fully settled to potentially allow for UBHL’s revival. This acknowledgment is crucial as it impacts the company’s liability and its potential for financial rehabilitation.
Mallya’s plea also calls for a detailed record of the original asset owners and the current status of any assets linked to him, UBHL, or third parties that might still be held by the banks but not yet liquidated for debt recovery. As part of his immediate relief, Mallya is seeking a halt on further sales of assets by the banks under the DRT’s amended recovery certificate issued on April 10, 2017, until there is clear confirmation that the debts are fully cleared.
