Why claiming for more even after recovering ₹14,131 crore against ₹6,203-crore Kingfisher Airlines debt, Karnataka HC questions consortium of banks

The High Court of Karnataka

Observing that a consortium of banks has already recovered assets worth ₹14,131.6 crore from fugitive businessman Vijay Mallya against an outstanding loan of ₹6,203 crore extended to the now-defunct Kingfisher Airlines, the High Court of Karnataka has questioned the banks’ action of continuing claim over 2.09 crore shares of United Breweries Ltd., (UBL) held by him and his son before they were attached by the authorities.

The court noted that Union Finance Minister Nirmala Sitharaman had informed the Lok Sabha on December 17, 2024, that assets worth ₹14,131.6 crore, besides UBL shares, had been restored from Mallya to the consortium of banks.

A Division Bench comprising Justice D.K. Singh and Justice T.M. Nadaf made these observations while allowing two petitions filed by Diageo Holdings Netherlands B.V and setting aside the 2017-18 orders passed by the of the Debt Recovery Tribunal (DRT) and Debt Recovery Appellate Tribunal (DRAT), which had the consortium of banks to attach 1,04,86,666 UBL shares held by Vijay Mallya and 1,04,64,288 shares jointly held by him and his son, Siddhartha Mallya.

At present these shares form part of attachment of assets made by the Enforcement Directorate under the Prevention of Money Laundering Act.