Karnataka High Court Hears Vijay Mallya’s Petition on Bank Recoveries, Read Court Proceedings

On August 29, 2025, the Karnataka High Court heard petitions filed by fugitive businessman Vijay Mallya and Daljit Mahal, director of the now-liquidated United Breweries Holdings Limited (UBHL). Both have sought directions to banks to provide detailed statements of accounts relating to the debt recoveries made against them.

Recently, in a podcast interview, Vijay Mallya said that the Government of India and the banks have recovered more money and assets from him than the loan amount he owed.

Petitioners’ Demands

The petitioners argued that the banks must furnish a comprehensive statement showing the dues owed by them, UBHL, and other certificate debtors. They also want the statements to reflect the periodic accrual of interest, credits for the recoveries already made, and details of assets that have been sold or utilised. These requests are based on the amended recovery certificate issued by the Debts Recovery Tribunal (DRT) on April 10, 2017.

Court Proceedings

Justice B.M. Shyam Prasad observed that this petition and another, WP 3357/2025, involve similar issues and should be taken up together. Senior Advocate Sajan Poovayya, representing the petitioners, suggested combining the hearings. The Court directed Advocate Chandrakant K. Patil, who is already appearing for the respondents in the connected case, to accept notice on behalf of multiple respondents in the present petition as well. The matter has now been posted for further hearing on September 15, 2025.

“It is stated by Sr Advocate Sajan Poovayya that the present petition and the petition in WP 3357/2025, could be taken up together as common issues are being addressed. In so far as respondents who are yet to be served, ld Sr counsel points out that Sri Chandrakant K Patil can indeed take notice for these respondents as he is the ld counsel on record in WP 3357/2025. Therefore, dispensing notice to R2 to 4 and 8 to R 12. Sri Chandrakant K Patil is directed to take notice not only for these respondents but for other respondents served already. Relist the petitions on September 15.”

Petitioners’ Arguments

During the hearing, Advocate Poovayya contended that the winding-up orders against Kingfisher Airlines and UBHL had reached finality, having been upheld even by the Supreme Court. He argued that the DRT had originally directed Kingfisher Airlines, as the principal debtor, and UBHL, as guarantor, to pay ₹6,200 crore. However, since 2017, the banks have recovered far more than this amount. According to records, the banks have realised ₹10,200 crore, and even the official liquidator has acknowledged that the banks have been restored. Poovayya further pointed out that the Finance Minister had informed Parliament that the total recoveries have touched ₹14,000 crore.

Povvayya had earlier argued that winding up order against Kingfisher Airlines and holding company United Breweries Holdings Limited, (UBHL) attained finality and up to the Supreme Court the winding up has been confirmed. The amount due had already been recovered, and even still additional recovery proceedings had been carried out against Mallya.

He had argued “Parallelly there was a debt recovery proceeding, in that a sum of Rs 6200 crore was ordered to be paid by the primary debtor Kingfisher and the UBHL which was the guarantor. That order also attained finality”.

Reliefs Sought

The petitioners have requested the Court to direct banks to issue detailed recovery statements, including the ownership of assets used to satisfy debts. They also want disclosure of assets belonging to them, UBHL, or third parties that remain with banks but have not yet been used for repayment. As an interim relief, the petition seeks a stay on all further recovery proceedings, including any fresh sale of assets under the amended DRT recovery certificate of April 2017.