An SBI-led consortium of banks has informed the Bombay High Court that around ₹8,752 crore remains outstanding and recoverable from Mallya as of August 2026, according to a report by The Economic Times.
Banks Say Amount Is Still Outstanding
The latest statement from the banks challenges Mallya’s claim that the banks have already recovered the entire amount owed to them.
Earlier, Vijay Mallya had said that banks have already recovered the default amount.
Mallya, who founded the now-defunct Kingfisher Airlines and was earlier Chairman of United Breweries Group, had approached the Bombay High Court seeking an end to the criminal case.
In 2020, Mallya argued that his financial dispute with the consortium of banks had been settled after assets were recovered.
Banks Have Recovered Over ₹10,000 Crore
In an affidavit submitted to the Bombay High Court, the lenders said that a debt recovery officer had provisionally recovered ₹10,270 crore, backed by a bond guarantee. The banks also said that another ₹544.58 crore had been recovered before proceedings were started before the Debt Recovery Tribunal.
However, the banks said that a significant amount is still unpaid.
According to the documents submitted to the court, Mallya owed ₹8,135.63 crore as of January 2026. After adding legal expenses and other charges, the amount increased to ₹8,751.86 crore by August 31, 2026.
ED Says Asset Recovery Does Not End Criminal Case
The Enforcement Directorate (ED) has said that assets worth around ₹14,132 crore have been returned to SBI. However, the agency has argued before the Bombay High Court that recovery of money or assets in civil proceedings does not automatically end criminal proceedings under the Prevention of Money Laundering Act (PMLA).
Mallya was declared a fugitive economic offender in 2019. He has argued that the recovery of assets exceeding the amount of the original debt should lead to the closure of the criminal case against him.
Banks Oppose Mallya’s Plea
The consortium of banks has opposed Mallya’s application seeking dismissal of the money laundering case. The lenders told the court that his challenge against an earlier order dated December 31, 2019, has no merit.
The banks also informed the court that some equity shares attached in the proceedings have not yet been sold or otherwise disposed of.
Civil Recovery and Criminal Case Continue
The case is currently proceeding on two separate fronts. The first involves recovery of money owed to the banks through civil proceedings. The second involves criminal proceedings by the Enforcement Directorate and the Central Bureau of Investigation (CBI) over allegations including bank fraud, criminal conspiracy and money laundering. The Bombay High Court is scheduled to hear the matter next on October 13.
Mallya Flee India
Mallya left India for the United Kingdom in March 2016. He was subsequently declared a Fugitive Economic Offender in India and sentenced to four months in jail for contempt of court in 2022 for transferring $40 million to his children in violation of court orders.
British courts approved Mallya’s extradition to India in 2018–2019, and he lost his final appeal in the UK High Court in 2020. However, his legal residency and confidential legal proceedings in the UK have kept him from being physically returned to India.
