Bengaluru: Fugitive businessman Vijay Mallya has approached the Karnataka High Court, seeking financial records of loans recovered by banks during the bankruptcy proceedings of his companies, Kingfisher Airlines and United Breweries Holdings Limited (UBHL).
Mallya, along with Daljit Mahal, a director of UBHL, has filed a petition requesting details of the principal and interest amounts recovered by banks during the bankruptcy process. The case was heard by a bench led by Justice R. Devdas, which issued notices to the concerned banks, directing them to file their objections.
The banks and institutions involved in the loan recovery process include the Debt Recovery Tribunal (DRT) in Chennai, the State Bank of India, Bank of Baroda, Union Bank of India, The Federal Bank Limited, IDBI Bank Limited, Indian Overseas Bank, Jammu & Kashmir Bank Limited, Punjab & Sind Bank, Punjab National Bank, UCO Bank, JM Financial Asset Reconstruction Company Pvt. Ltd., and UBHL's official liquidator. The court has scheduled the next hearing for February 19, instructing these entities to respond to the petition.
During the hearing, senior advocate Sajjan Poovayya, representing the petitioners, argued that Kingfisher Airlines and UBHL were declared bankrupt on April 10, 2017, following an order from the Debt Recovery Tribunal. He contended that as part of the bankruptcy proceedings, banks and financial institutions had recovered amounts, including interest, and that the petitioners were entitled to a detailed statement of these recoveries.
Poovayya further pointed out that the bankruptcy process had concluded, and a separate loan recovery process had been initiated. He stated that Kingfisher Airlines, as the primary borrower, had been ordered to repay ₹6,200 crore. The loan recovery officer reported that between 2007 and the present, a total of ₹6,200 crore to ₹10,200 crore had been recovered. Additionally, Finance Minister Nirmala Sitharaman had informed Parliament that ₹14,000 crore had been recovered from Mallya and other defaulters.
According to company law, once a loan is fully repaid, the parent company bears no further liability. The petitioners argued that if the loan was completely settled, they could seek revival of the company. However, such a move would only be possible if the loan recovery officer issued a certificate confirming full repayment. Since the loan recovery process is ongoing and there has been no official confirmation of complete repayment, the petitioners urged the court to issue an interim order halting further recoveries until a decision is made on their request.
The case will be further examined in the upcoming hearing on February 19.
