SBI-led consortium tells Bombay HC Mallya owes over ₹8,700 crore; counters his claim of recovering more than dues

SBI-led consortium tells Bombay HC Mallya owes over ₹8,700 crore; counters his claim of recovering more than dues (Agencies) A consortium of banks led by State Bank of India ( SBI ) recently informed the Bombay High Court (HC) that, as of 31 August, fugitive businessman Vijay Mallya owes lenders roughly ₹ 8,752 crore. According to a report by The Economic Times , fugitive businessman Vijay Mallya, founder of the now-defunct Kingfisher Airlines and former chairman of United Breweries Group, has settled dues amounting to ₹ 10,270 crore. The lenders’ statement contradicts Mallya’s claim that the banks had already recovered more than the amount owed to them. Banks' consortium files affidavit in Mallya's case: What we know In an affidavit, the banks informed the Bombay HC that the debt recovery officer had "temporarily recovered" ₹ 10,270 crore under a bond undertaking provided by the consortium. The lenders added that an additional ₹ 544.58 crore was also recovered before the lawsuit was filed before the Debt Recovery Tribunal (DRT). However, according to a previous affidavit filed in January this year, ₹ 8,135.63 crore, excluding legal and other expenses, was yet to be recovered. Citing a senior banker, ET reported that the recovery amount should not be considered separately from the dues that continue to be outstanding under the recovery certificate, including subsequent accruals. The banker added that the consortium maintains that substantial amounts are still legally recoverable, despite the assets and proceeds realised to date. Banks noted that the previous outstanding amount had subsequently risen to ₹ 8,751.86 crore, excluding legal and other expenses, by 31 August. The disclosure comes at a significant time, since Mallya has previously stated in court that the consortium had already recovered more than what he originally owed. Further, the lenders also informed the court that several shares attached in the case against Mallya continue to be intact and have not been sold. Mallya sought quashing of criminal cases Earlier, in 2020, Mallya moved the high court and sought dismissal of criminal cases against him, arguing that his long-standing dispute with the lenders had been settled since they had fully recovered their dues. The Enforcement Directorate (ED) has submitted its response in the case. Last month, the high court asked SBI to file an affidavit responding to Mallya’s plea. The latest affidavit was filed before the Bombay High Court in response to the fugitive businessman's plea seeking to quash the money laundering case against him. However, the SBI-led consortium opposed his plea, stating that Mallya’s criminal application challenging the 31 December 2019 order is without merit and should be rejected. Mallya battles two-way battle with banks, investigating agencies The dispute between Mallya, the SBI-led consortium , and investigating agencies has progressed along two separate fronts: recovery of outstanding bank dues and criminal proceedings. While banks have sought recovery via the DRT and sale or recovery of his attached assets, the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) have pursued cases alleging criminal conspiracy, bank fraud, and money laundering tied to loans extended to the now-defunct Kingfisher Airlines. The ED has maintained that Mallya's assets worth nearly ₹ 14,132 crore have been returned to SBI, but added that such recoveries only amount to the settlement of civil claims and cannot quash pending criminal proceedings against the fugitive businessman under the Prevention of Money Laundering Act (PMLA). The matter is now scheduled to be heard next on 13 October. About the Author Swati Gandhi Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.