'Indian Banks Should Be Ashamed', Vijay Mallya Tears Into Public Sector Lenders Over Recoveries
The recoveries stem from ED actions, including asset sales and attachments totaling more than double the principal debt, a point Vijay Mallya has repeatedly highlighted since mid-2025.
Vijay Mallya, a fugitive businessman accused of defaulting on loans worth over Rs 9,000 crore related to Kingfisher Airlines, on Tuesday criticised Indian public sector banks for failing to provide accurate recovery statements despite Finance Minister Nirmala Sitharaman's December 2024 parliamentary disclosure that Rs 14,131.60 crore had been recovered from him against a Rs 6,203 crore judgment debt.
In a post on X (formerly Twitter), Mallya wrote, "The Indian Public Sector Banks who claim monies from me as a guarantor should be ashamed that they have not yet submitted an accurate statement of account of recoveries made despite the Union Finance Minister clearly stating that Rs 14,100 crores have been restored to the very same Banks." [sic]
The recoveries stem from Enforcement Directorate actions, including asset sales and attachments totaling more than double the principal debt, a point Mallya has repeatedly made since mid-2025 to argue he has overpaid and is unfairly targeted.
In a follow-up post, Mallya announced his decision to pause UK legal challenges against a bankruptcy order until Indian public sector banks disclose full recovery details.
"I will not pursue legal action in England till the Indian Public Sector Banks come clean as I have a justified counterclaim that can be adjudicated only in India," added Mallya. [sic]
The statement ties to his October 13, 2025, withdrawal of a UK annulment application, enabling trustees to seize assets over disputed Kingfisher Airlines debts, where banks report Rs 14,100 crore recovered against a Rs 9,000 crore principal.
Vijay Mallya's Bankruptcy Annulment Application In UK
Mallya who is wanted in India to face trial on fraud and money laundering charges has discontinued an application to annul a UK bankruptcy order ahead of a planned hearing in London. It means the "Trustee in Bankruptcy" can continue to pursue assets to help a consortium of banks led by the State Bank of India (SBI) realise the repayment of an estimated judgment debt of around 1.05 billion pounds owed by the 69-year-old's now-defunct Kingfisher Airlines.
Mallya, meanwhile, was pursuing a separate annulment application through his lawyers Zaiwalla & Co. against the 2021 bankruptcy order on the basis that the banks’ debt had already been recovered in India. It is believed to have been discontinued as an Indian writ petition, compelling banks to provide information as to the recoveries made by them, has not progressed.
The case dates back to 2017, when the banks registered the Indian Debt Recovery Tribunal's (DRT) judgment in the English courts, which pertained to a personal guarantee Mallya had provided in relation to loans made to Kingfisher Airlines. The banks then served Mallya with a bankruptcy petition in September 2018, which he opposed on multiple grounds.
The hearings in the case of SBI and others date back to May 2018, when the banks were granted a worldwide freezing order based on the DRT judgment. Since then, there have been a series of hearings in this case, which led to a bankruptcy order against Mallya on July 26, 2021.
Separately, in relation to India's extradition request, Mallya remains on bail in the UK while a 'confidential' legal matter believed to be related to an asylum application is resolved.
