Bombay HC Nears End in Mallya Asset Recovery Case

The Bombay High Court is moving towards a potential conclusion in the protracted asset-recovery dispute between fugitive businessman Vijay Mallya and a consortium of banks, led by the State Bank of India (SBI). The court has formally requested the Enforcement Directorate (ED) to submit an affidavit clarifying whether the settlement and recovery process is complete.

This development took place as the court considered Mallya’s 2020 petition. This petition had challenged a previous ruling that allowed the SBI-led consortium to utilize ED-attached assets to recover Kingfisher Airlines’ outstanding dues.

Key Financial Recoveries

• Public-sector banks have recovered approximately Rs 15,000 crore from Mallya.
• This amount surpasses the originally claimed dues of Rs 6,203.35 crore, plus interest.

Mallya’s lawyer, Amit Desai, informed the court that circumstances have significantly evolved since the petition’s filing in 2020, with most of the assets having already been addressed. Desai also criticized the banks for prolonging the matter, referencing an RBI audit that attributed the issue to an airline’s business failure.

Court’s Stance and Future Proceedings

Justice Jadhav underscored the necessity of concluding the matter, stating, “The idea is to move on… otherwise the relations and the economy of the country suffer.” The court further clarified that any resolution of the asset-recovery dispute would not affect the ongoing criminal proceedings against Mallya.

These criminal proceedings, Justice Jadhav asserted, must be “taken to their logical end.” This distinction ensures that while financial recovery progresses, accountability for criminal charges remains separate and continues its course.