Mallya moved the high court against several nationalised and private sector banks including the State Bank of India, Punjab National Bank and an asset reconstruction company, challenging their recovery process
'Debt recovered multiple times over', Mallya tells HC; notices issued to banks
Mallya, who moved Karnataka HC on February 3, asked to direct banks to provide him with a statement on the total amount of money recovered by the banks
Fugitive liquor baron Vijay Mallya has moved Karnataka high court seeking information on the total amount recovered by the banks from him saying his “debt has been recovered multiple times over”.
Mallya asked the court to direct banks to provide him with a statement of accounts for the amounts owed by him, United Breweries Holdings Limited (in liquidation) and other certificate debtors.
Mallya’s petition was heard briefly by Justice R Devdas on Wednesday (February 5), who then issued notices to ten banks, one recovery official, and an asset reconstruction company.
Challenging recovery process
On February 3, Mallya had moved the high court against several nationalised and private sector banks including the State Bank of India, Punjab National Bank and an asset reconstruction company, challenging their recovery process.
According to Mallya’s lawyer, Sajan Poovayya, while Kingfisher Airlines owed around ₹6,200 crore in debt, the authorities had recovered the "principal debt amount multiple times over."
However, between 2017, the ₹6200 crore was recovered multiple times over and as on date the recovery officer had said ₹10,200 crore has been recovered, added Poovayya.
Moreover, he cited the statement made in the Parliament by the finance minister that ₹14,000 crore has been recovered from him.
Further, the lawyer argued that if the debt has been fully paid the guarantor company (UBHL), it can be revived since it has no liability. That can happen only after the recovery officer issues a certificate saying that the debt has been recovered, he pointed out.
“To date the amount continues and recoveries continue and no order has been passed to say whether the primary debt is paid or not," stressed the lawyer.
The plea also by way of interim order asks to stay all further actions by banks, including further sales of the petitioner's assets lying with them.
Next Story